Use the above table. Adam has 3 apples and 3 oranges. Eve has 2 apples and 2 oranges. Eve asks Adam to give her an apple in exchange for an orange. Should Eve go through with this exchange?
A. No. Adam likes apples more than oranges.
B. Yes. She is indifferent between consuming apples and oranges.
C. Yes. This way she will have 3 apples, which will give her more total satisfaction.
D. No. She gives up more satisfaction than she gets.
Answer: D
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In choosing between apartments in two different locations, the marginal commuting cost is given by:
A) the commuting cost from the apartment located closer to the destination. B) the sum of the commuting cost from each apartment to the destination. C) the commuting cost from the apartment located farther away from the destination. D) the difference between the commuting cost from two different apartments to the destination.
Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?
A) 14 B) 7 C) 4 D) 30