ECON exam 2 - To maximize economic well-being a person...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
To maximize economic well-being, a person should: -balance the benefits and costs of different courses of action and select the one that adds most to satisfaction The price of good X is $16, the price of good Y is $ 24, and the marginal utility from the last unit of good X consumed is 48 units of satisfaction. To maximize total satisfaction from consuming this amount of goods X and Y, the marginal utility for good Y must be: -72 units of satisfaction Limited liability is a characteristic of: - corporations The money received by a business when its product is sold is called its: - revenue If a firm sells 10,000 units of output at a price of $100 each, and has a cost of $1,200,000 its: - loss equals $200,000 Concerning the distribution of income in the U.S., one could conclude that: - there are many households at low income levels and few households at high income level Which of the following statements about poverty is true? -certain groups in society, such as the elderly, are more likely to have a high rate of poverty than other groups The cost of a purchase or action measured in terms of its forgone alternative is its: -opportunity cost The utilities from consuming different amounts of good X are as follows: The total utility when one unit of good X is consumed is: -80 points The marginal utility from consuming the second unit of good X is: - 40 points According to the Law of Diminishing Marginal Utility: - beyond some point, the additional satisfaction from consuming
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/06/2008 for the course ECON 190 taught by Professor Belasen during the Spring '08 term at Saint Louis.

Page1 / 4

ECON exam 2 - To maximize economic well-being a person...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online