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Quiz 3 - antique objects than do the sellers This...

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Quiz 3 1. A consumer who has a limited budget will maximize utility or satisfaction when the: Ratios of the marginal utility of each product purchased divided by its price are equal 2. Suppose that Ms. Spencer is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices $2 and $4 respectively. The marginal utility of the last units of A and B are 16 and 24 respectively. These data suggest that Ms. Spencer Should buy less B and more A 3. Professional buyers of antiques often have more information about the value of
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Unformatted text preview: antique objects than do the sellers. This illustrates: Asymmetric information 4. A product has utility if it: Satisfies consumer wants 5. Brinley puts on an art show in a public space, asking for donations based on how much people enjoy his work. Economists would expect that: People will understate their enjoyment of the art in order to “ride” 6. The Market system does not produce public goods because: Private firms cannot stop consumers who are willing to pay for such goods from benefiting from them...
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