If Mark's marginal utility per dollar spent on the last taco is 15 and his marginal utility per dollar spent on the last burrito is 20 units, what should Mark do to increase his total utility?
What will be an ideal response?
Mark should buy more burritos and fewer tacos. If Mark decreases his purchases of tacos by $1, he loses 15 units of utility. But if he then spends the dollar on burritos, he gains 20 units of utility. Because his gain in utility exceeds his loss, Mark's total utility increases as he buys more burritos and fewer tacos.
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Refer to Figure 7-1. The efficient equilibrium quantity is ________ thousand vaccinations
A) 100 B) 200 C) 300 D) >300
Critics of Keynesian fiscal policy argue that deficit spending will not stimulate the economy, because higher interest rates will discourage consumption and investment. This argument is known as the:
a. deficit-substitution effect. b. multiplier effect. c. burden-of-debt effect. d. crowding-out effect.