Chapter 7 study Questions

Chapter 7 study Questions - Rahim Spencer ECON 203 Chapter...

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Rahim Spencer ECON 203 10/16/09 Chapter 7 Study Questions 1. Units consumed Total utility Marginal utility 0 1 2 3 4 5 6 0 10 18 25 30 33 34 10 8 7 5 3 1 a.) Decreasing. You know this because marginal utility is decreasing b.) Disagree. c.) Agree. 2. She is not buying the maximum utility combination because the marginal utility per cent is not equal. She should buy more milk and less milk to obtain maximum utility. 3. a.) 4 units of A, 3 units of B, units of C, and 0 units of D b.) Ricardo will save $4.00 c.) 36/$18 = 12/$6 = 8/$4 = 2/$1 4. 5. 6. a.) After economic growth there is an abundance of goods, but there are already goods that are available. So now one has to figure how to spend time either making the goods or enjoying the goods. b.) If one takes every factor into account it would take too much time. Money will be lost because so much time is being used to consider every factor, time that could be used to make more money. c.) It does not take very much time to make a request to Santa, and if the item is received
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This note was uploaded on 12/07/2009 for the course ECON 203 at USC.

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Chapter 7 study Questions - Rahim Spencer ECON 203 Chapter...

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