The CARD Act, which tells credit card holders how long it will take to pay off their debt if they only make minimum payments, and how much they need to pay in order to pay off the debt in three years, is an example of:
A. disclosing information in more usable ways.
B. how the presentation of information can affect people's choices.
C. choice architecture that nudges people toward better decisions.
D. All of these statements are true.
Answer: D
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Since Ditto can always be expected to choose the same activity as Dot in the copycat game
a. any move by Dot to escape from Ditto would not be a Pareto improvement. b. any move by Dot to escape from Ditto would be a Pareto improvement. c. Ditto's choice to follow Dot is a Pareto improvement over going by himself. d. Ditto's choice to follow Dot would be a Pareto improvement over playing by himself so long as Dot does not move.
If a demand curve is unit elastic, then P times Q will remain constant when P changes.
Answer the following statement true (T) or false (F)
Refer to the graphs shown.
If income is $60 and the price of Y is $3, a decrease in the price of X from $3 to $2 would cause a movement:
A. from point A to point B. B. along the demand curve from point E to point F. C. from point C to point B. D. along the demand curve from point D to point E.
John is currently spending all of his income. For the last unit of Good X consumed John gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $2. The price of Good Y is $5. If John wants to maximize his utility
he should A) continue to purchase the same amount of Good X and Good Y. B) increase the consumption of Good X and decrease the consumption of Good Y. C) decrease the consumption of Good X and increase the consumption of Good Y. D) decrease the consumption of Good X and decrease the consumption of Good Y.