When a person consumes two goods (A and B), that person's utility is maximized when the budget is allocated such that:
A) the marginal utility of A equals the marginal utility of B.
B) the marginal utility of A times the price of A equals the marginal utility of B times the price of B
C) the ratio of total utility of A to the price of A equals the ratio of the marginal utility of B to the price of A.
D) the ratio of the marginal utility of A to the price of A equals the ratio of the marginal utility of B to the price of B.
D
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Economic growth in Cuba has been slow. What can best explain the slow growth?
A) lack of incentive mechanisms and economic freedom B) lack of economic resources C) labor productivity is low. D) too much competition within the economy E) a non-democratic form of government
What are the three basic economic decisions each household must make?
What will be an ideal response?