When someone is served pizza and soda for dinner, it is typical behavior to eat some pizza, then drink some soda, then eat more pizza, and so on, until the person stops consuming both. How can this behavior be explained using economic concepts?
A. The individual is revealing that he can't decide whether he gains more utility from pizza or from soda.
B. People tend to act irrationally around food, and the concept of utility maximization cannot be applied.
C. The person eats pizza until his marginal utility for pizza is lower than it is for soda, then he switches to soda.
D. The concept of unlimited wants says he will never tire of eating pizza and soda.
C. The person eats pizza until his marginal utility for pizza is lower than it is for soda, then he switches to soda.
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one can of cola if Sweet-tooth Land moves from point C to point B?
A) 20 chocolate bars per can of cola B) 10 chocolate bars per can of cola C) 2 chocolate bars per can of cola D) 1/2 chocolate bars per can of cola
The original impetus for Social Security was
A) to provide retirement fund for all persons. B) to prevent future depressions. C) the result of social engineering by politicians. D) a proper response to the stock market crash of 1929.