Wendy spends $30 a week on movies and magazines. The price of a movie is $8, the price of a magazine is $2, and Wendy sees 3 movies a week and buys 3 magazines
The price of a magazine now increases to $4 and Wendy's brother gives her $6 a week so that she can still see 3 movies a week and buy 3 magazines. In this situation, Wendy will see ________ movies and buy ________ magazines. A) 3; 3
B) less than 3; less than 3
C) more than 3; fewer than 3
D) less than 3; more than 3
C
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When modeling consumer choice, the price ratio of the two products is the:
A. demand for the two products. B. equilibrium exchange rate. C. point of tangency for equilibrium. D. slope of the budget line.
Sue consumes apples and bananas. Suppose Sue's income doubles and the prices of apples and bananas do not change. Sue's budget line will
A) shift leftward and its slope will not change. B) remain unchanged. C) shift rightward and its slope will not change. D) shift rightward and become steeper.
An increase in total factor productivity
A) increases consumption, increases output, and increases the real wage. B) reduces consumption, increases output, and increases the real wage. C) reduces consumption, increases output and reduces the real wage. D) reduces consumption, reduces output, and reduces the real wage.
Explain why charitable giving is Pareto superior move. Is there an economic explanation of why the supply of charity might be sub-optimal? Explain
What will be an ideal response?