If the marginal utility of each good a consumer buys does not diminish but remains constant, we should see consumers
a. buying no goods at all
b. spending all of their income on the good with the highest marginal utility
c. buying one unit of each good
d. buying only the least expensive good
e. leaving the store in total confusion
B
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The income per capita of two neighboring countries for a particular year were equal. However, Country 1 had a higher income per worker than Country 2. Which of the following is likely to be true?
A) The number of people unemployed is lower in Country 1 than in Country 2. B) The number of children aged below 15 is higher in Country 2 than in Country 1. C) The number of retired people is higher in Country 2 than in Country 1. D) The number of people employed is higher in Country 2 than in Country 1.
In the table above, how many jackets must Mark forgo for every dress he makes?
A) 2/3 of a jacket B) 1 jacket C) 24 dresses D) 16 jackets E) 1 1/2 jackets