Sandy derives utility from consuming “all other goods,” g, and clean air （measured by particulate matter removed per m3）, a, as measured by the utility function U（g,a） = g0.6a0.4. The price of “all ot
A. Total market demand is 14 units of clean air
B. Total market demand is 12 units of clean air
C. Total market demand is 10 units of clean air
D. Total market demand is 16 units of clean air
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If oranges were found to cure cancer（）
A. the equilibrium price of apples would likely fall
B. the equilibrium price of oranges would likely increase in the near term
C. the equilibrium quantity of oranges would likely increase
D. All of the above
The fact that your fourth slice of pizza does not generate as much satisfaction as your third slice is an example of（）
A. consumer surplus
B. diminishing total utility
C. diminishing marginal utility
D. the paradox of value
If two bundles are on the same indifference curve, then（）
A. the consumer derives the same level of utility from each
B. the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility
C. no comparison can be made between the two bundles since utility cannot really be measured
D. B and C
Which of the following policies would NOT be consistent with the Mercantilist balance-of-trade doctrine（）
A. payment of high wages to labor
B. import duties on final products
C. export subsidies
D. prohibition of imports of manufactured goods
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