In a given time period, a person consumes more and more of a good or service and, as a result, enjoys each additional unit less and is willing to pay less for each additional unit. This behavior is consistent with the law of

Dana and Robin produce smoothies and pizza. In one hour Dana can make 20 smoothies or 10 pizzas. In one hour Robin can make 18 smoothies or 6 pizzas. Which of the following statements is true?

If the government imposes a tax on the production of cars, which of the following will occur in the market for cars?

A professor hires two aides, assigning them the tasks of reading student papers and of typing lecture notes on a computer. One of the aides, Ben, can read 1 page of a student paper per minute or type 50 words of lecture notes per minute, and the other aide, Ann, can read 3 pages of a student paper per minute or type 60 words of lecture notes per minute. Which of the following statements is true?

At her current level of consumption, a consumer is willing to pay up to $1.50 for a bottle of water and up to $1,500 for a diamond ring because the

Table: Costs and benefits for new construction projects Project Total costs (in millions) Total benefits (in millions) Widening existing highways $100 $80 Building new highways $100 $90 Building a new bridge $100 $140 Building a new tunnel $100 $115 Expanding an existing airport $100 $130 The table above shows the costs and benefits for new construction projects the government is considering. Based on these costs and benefits, which of the construction projects should the government undertake?

Marginal analysis suggests that an individual will consume one additional unit of a good if the

If nations specialize according to their comparative advantage and engage in international trade with each other, each nation can

The information below shows the marginal utilities a student receives from the consumption of pizza and pens. Assume that the marginal utility of each good is independent of the quantity of the other good consumed. Table: Marginal utilities from the consumption of pizza and pens Units of pizza Marginal utility of pizza Units of pens Marginal utility of pens 1 20 1 8 2 18 2 7 3 16 3 6 4 14 4 5 5 12 5 4 6 10 6 3 7 9 7 2 8 8 8 1 If the student purchases 2 units of pizza and 2 units of pens, the student’s total utility will be

Suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob can knit 10 sweaters or make 6 blankets. Which of the following is true?