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2. Eric Shabby is sitting in a restaurant eating cans of Spam. The cans of Spam cost $1.00 each. According to the economic decision rule, Eric will stop eating Spam when the a marginal benefit to him of an additional can of Spam is less than $1.00. b. marginal cost to him of an additional can of Spam is less than the marginal benefit. c. marginal cost to him of an additional can of Spam is greater than $1.00. d marginal benefit to him of an additional can of Spam is greater than $1.00.
2. Eric Shabby is sitting in a restaurant eating cans of Spam. The cans of Spam cost $1.00 each. According to the economic decision rule, Eric will stop eating Spam when the a marginal benefit to him of an additional can of Spam is less than $1.00. b. marginal cost to him of an additional can of Spam is less than the marginal benefit. c. marginal cost to him of an additional can of Spam is greater than $1.00. d marginal benefit to him of an additional can of Spam is greater than $1.00.
Lelia LubowitzLv2
3 May 2018
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Related questions
1. In recent years China market reforms have turned toward:
| Ā | A. | more free trade, allowing foreign-owned enterprises to import, export, and establish production in China. |
| Ā | B. | establishing more urban collectives. |
| Ā | C. | transforming state-owned enterprises into shareholder-owned corporations. |
| Ā | D. | reestablishing central planning. |
2. In pure capitalism, the role of government is best described as:
| Ā | A. | nonexistent |
| Ā | B. | limited |
| Ā | C. | significant |
| Ā | D. | extensive |
3. In pre-reform Russia and pre-reform China:
| Ā | A. | both consumer and capital goods outputs were determined by central planning. |
| Ā | B. | both consumer and capital goods outputs were determined by the market. |
| Ā | C. | capital goods output was determined by planning, but consumer goods output was determined by the market. |
| Ā | D. | consumer goods output was determined by planning, but capital goods output was determined by the market. |
4. In college, you practically existed on Spam, but now that you have an $80,000 a year job,Ā you never want to see Spam again. We can safely conclude that you consider Spam to be
| Ā |
| Ā | A. | a normal good. |
| Ā | B. | a complementary good. |
| Ā | C. | an inferior good. |
| Ā | D. | a luxury good. |
5. In a free market, the price system determines how society's output will be distributed by:
| Ā | A. | ensuring that low-income people can buy all of the necessities for living. |
| Ā | B. | providing goods for those willing and able to pay the equilibrium price. |
| Ā | C. | ensuring that each commodity is produced by the most efficient technique. |
| Ā | D. | allowing all those who desire a commodity to buy it. |
Ā
