If income and the prices of both goods all double, the budget line will a. become flatter b. The term utility in economics refers to the a. satisfaction received by individuals from consuming goods and services b. real income available to consumers for purchasing goods and services c. relationship between the demand for a product and the supply of a product d. usefulness of a good or service e. slope of the budget line 5. Among all the combinations of goods attainable by a consumer facing a budget constraint, the one that maximizes total utility is the one that a. maximizes marginal utility per dollar spent on each good b. maximizes marginal utility per pound, or other physical quantity, of each good c. equates the marginal utilities per dollar spent on each good d. equates the marginal utilities per pound, or other physical quantity, of each good e. drives the marginal utility of each good to zero 8. An individual's demand curve for a good is derived by a. varying the income level and observing the resulting total utility derived from both goods b. varying the price of one good and observing the resulting quantities demanded of the other good c. varying the prices of both goods and observing the changes in quantities demanded of both goods d. shifting the budget line to the left and calculating the loss in total utility e. varying the price of one good and observing the resulting quantities demanded of that good 10. The income effect measures how a. the quantity of a good demanded changes in response to a change in income, with prices constant b. the quantity of a good demanded changes in response to a price change in the good, with income constant c. far the budget line shifts due to a change in income d.
Higher education is a normal good.
Most U.S. firms are a. In the short run, a. at least one of the firm's inputs is fixed b. customer tastes and preferences are fixed c. The firm's implicit costs are a. Long-run average total cost must be a. rising b. declining c. greater than or equal to the marginal unit of variable cost d. greater than or equal to the short run average total cost e. When there are implicit costs of production, a. accounting and economic profit are equal b. opportunity costs of production are zero c. explicit costs of production are small d. accounting profit will exceed economic profit e. economic profit will exceed accounting profit 40.