Which of the following is an example of spending on factors of production in the circular flow model?
A) The "Lucky Ducky" casino buys a new craps table for the casino floor.
B) Laurence rents a car to drive to a wedding in San Diego.
C) Yvette pays $50 to join a softball league.
D) Tuan purchases a cappuccino at the student union.
A
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If the marginal utility per dollar spent on Good X exceeds that of Good Y, the utility-maximizing consumer should:
a. buy less of Good X and more of Good Y. b. buy less of Good Y and more of Good X. c. buy more of both Good X and Good Y. d. buy less of both Good X and Good Y.
The producer can raise the level of profit by hiring more units of a resource if:
a. the marginal revenue product of the resource is equal to the marginal factor cost. b. the marginal factor cost becomes negative. c. the marginal revenue product of the resource is greater than the marginal factor cost. d. the marginal revenue product falls to zero. e. the marginal revenue product of the resource is less than the marginal factor cost.