As long as the marginal utility per dollar from pizza is greater than the marginal utility per dollar from soda, then to maximize utility a consumer will buy
A) more soda to equalize the marginal utility per dollar between soda and pizza.
B) less pizza and less soda.
C) more pizza and less soda.
D) equal amounts of pizza and soda.
C
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An increase in U.S. income that increases American demand for all normal goods (including imports from Britain) will shift
a. the U.S. demand curve for foreign exchange to the right, causing an increase in the dollar-per-pound exchange rate b. the U.S. demand curve for foreign exchange to the left, causing a decrease in the dollar-per-pound exchange rate c. the U.S. supply curve for foreign exchange to the right, causing a decrease in the dollar-per-pound exchange rate d. the U.S. supply curve for foreign exchange to the left, causing an increase in the dollar-per-pound exchange rate e. neither the U.S. demand curve for foreign exchange nor the U.S. supply curve for foreign exchange
Explain the concept of efficiency as it relates to taxation