Assume that Juan concludes that he should eat less and play video games more. In this situation, it must be TRUE that the marginal utility of the last dollar spent on food is
A) more than the marginal utility of the last dollar spent on video games.
B) less than the marginal utility of the last dollar spent on video games.
C) equal to the marginal utility of the last dollar spent on video games.
D) negative and less than the marginal utility of the last dollar spent on video games.
Answer: B
You might also like to view...
Which statement is TRUE about a comparison of economic freedom with political freedom?
A) Economic freedom is more important than political freedom when considering positive economic growth. B) Economic freedom leads to positive economic growth while political freedom leads to negative economic growth. C) Political freedom is more important than economic freedom when considering positive economic growth. D) Economic freedom cannot exist without political freedom.
The cost of producing an additional unit of a good or service that falls on people other than the producer is the marginal
A) external cost. B) private cost. C) social cost. D) social benefit. E) None of the above answers is correct.