If a consumer always buys goods rationally, then
A) the marginal utility per dollar spent on all goods will be equal.
B) the marginal utility of the different goods consumed will be equal.
C) the average utilities of the different goods consumed will be equal.
D) the total utilities of the different goods consumed will be equal.
A
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Tim is working on a school report on the proposed merger between American Airlines and U.S. Airways
He finds that U.S. Airways' annual revenue for 2012 rose by 3.7 percent over the previous year, while the revenue for American Airlines recorded an increase of almost 6 percent. Based on this, he concludes that, in 2012, passenger traffic must have increased more for American Airlines than for U.S. Airways. Is Tim's conclusion correct? Explain your answer.
If a country's production possibilities curve gets more bowed out over time, it is an indication that
A) technological change has taken place. B) society is learning to use its resources more efficiently. C) the quantity of labor and capital have increased. D) resources have become more highly specialized.