Increasing the income tax rate ________ the ________

Refer to the indifference curve in Figure 3.3. Which of the following statements about marginal utility (MU) is correct?

A) MU(A) = 0. B) MU(B) = 0. C) MU(A) is negative. D) MU(B) is negative.

Ronnie waits one hour in queue to buy a ticket to a rock concert. The opportunity cost of buying the $28 ticket:

a. is Ronnie's best alternative use of the sum of $28 spent on the ticket. b. is Ronnie's best alternative use of the one hour it took to wait in queue. c. is the revenue of $28 earned by the ticket agent. d. is Ronnie's best alternative use of both $28 and the one hour spent in the queue. e. cannot be measured because there is no opportunity cost associated with consumption.