Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will
A. remain at AC.
B. swivel toward AD.
C. swivel toward AO.
D. swivel toward AB.
Answer: B
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Based on data from the U.S. economy, the marginal propensity to consume is about
A) 0.95. B) 0.75. C) 0.60. D) 1.10. E) 0.87.
Total cost is calculated as
a. average fixed cost plus average variable cost b. fixed cost plus variable cost c. the additional cost of the last unit produced d. marginal cost plus variable cost e. marginal cost plus fixed cost
A person has a basic choice between eating meals at home and eating meals in a restaurant. The cost of the food that is eaten at home is $10 per meal. The cost of a restaurant meal is $20. It takes two hours to eat a meal at home (including
preparation time and cleanup time). It takes one hour of time to eat a meal in a restaurant. The marginal utilities of the home meal and the restaurant meal are the same. The person values time at $12 per hour. What does the theory of consumer behavior suggest the rational consumer will decide to do: eat at home or in a restaurant? Please provide the best answer for the statement.
Refer to the table above. Which statement is correct about the change from 2004 to 2005?
The following table shows the foreign currency per U.S. dollar near the end of January of each year listed.
A. The Australian dollar depreciated in value relative to the U.S. dollar
B. The British pound appreciated in value relative to the U.S. dollar
C. The euro appreciated in value relative to the U.S. dollar
D. The Japanese yen appreciated in value relative to the U.S. dollar