If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal utility of food
A) is not positive.
B) does not diminish as food increases.
C) is not affected by the amount clothing.
D) increases as one obtains more clothing.
D
Economics
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Using the Internal Rate of Return approach to investment, one would undertake an investment if the internal rate of return
A) equals zero. B) equals the interest rate. C) exceeds the interest rate. D) is less than the interest rate.
Economics
A tax that creates an excess burden may nevertheless improve efficiency if
a. consumption of the good has been generating beneficial externalities. b. consumption of the good has been generating no externalities. c. consumption of the good has been generating detrimental externalities. d. the good has been supplied by a monopolist.
Economics