Anita has five pounds of bananas and values their total utility at $2.14. If she acquires one additional pounds of bananas and it has a marginal utility of 11 cents, Anita's total utility will:

Select one:

a. Rise to $2.25

b. Fall to $2.03

c. Stay the same

d. Fall to $2.11

e. Statistics.

Suppose you produce wooden desks, and government legislation protecting the spotted owl has made it more expensive for you to purchase wood. What do you expect to happen to the equilibrium price and quantity of wooden desks?

Select one:

a. Price and quantity will increase.

b. Price will increase but quantity will decrease.

c. Price and quantity will decrease.

d. Price will decrease but quantity will increase.

Raff does not understand economics well. He asks you "what is the difference between economic profit and accounting profit?" You are running late and have to give him quick, yet correct, answer. What do you tell Raff?

Select one:

a. Marginal cost.

b. Marginal tax rates.

c. Opportunity costs.

d. Time value of money.