Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A) 16 thousand spoons B) 26 thousand forks
C) 20 thousand forks D) 0 spoons
Ques. 2Kylie spends her income of 150 per week on two goods: movies (which cost 5 each) and books (which cost 10 each).
At her current level of consumption, the marginal utility from the last movie consumed is 20 and the marginal utility from the last book consumed is 30 . Is Kylie maximizing her utility? Why or why not? If not, what should Kylie do to achieve a higher level of utility?
Ques. 3The health care system in the United Kingdom is referred to as ________, under which the government owns most of the hospitals and employs most of the doctors.
A) an out-of-pocket system B) a single-payer health care system
C) a universal health insurance system D) socialized medicine
Ques. 4What is the distinction between total utility and marginal utility?
What will be an ideal response?
Ques. 5What does the word marginal mean in economics? What is a marginal benefit? What is a marginal cost? What is marginal analysis?
What will be an ideal response?
Ques. 6Define the terms of trade.
What will be an ideal response?
Ques. 7Why are economists less worried about industry concentration than they once were?
What will be an ideal response?
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