Betty is out on a first date with Barney. She decides to order the garden salad with dressing on the side in an effort to make a good first impression, even though she prefers leg of lamb. Economic theory:
A. would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him.
B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression.
C. cannot explain why someone would choose a meal that brings her less utility than another.
D. cannot be used to explain matters of the heart.
Answer: B
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Which of the following products allows the seller to identify different groups of consumers (segment the market) at virtually no cost?
A) early bird dinner specials B) a pair of Bose speakers C) iPhones D) books sold online
Economists look at which of the following to get a quick visual expression of income distribution?
a. Gini coefficient. b. IRS records of how much income each household earned. c. supply and demand curves for resources. d. Lorenz curve. e. surveys of business estimates for MRPs.
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 What is the marginal cost of production between 80 and 120 units of output each day?
A. $70 B. $14 C. $1.75 D. $1.40
When you own part of a company and share in its profits, we say that you have:
A. credit with that company. B. intermediary stock in that company. C. financial diversification in that company. D. equity in that company.