Figure 7.4
The above figure represents the marginal utility per dollar for candy bars and oranges for Sophia. The price of each product is $0.50, and Sophia has a budget of $4.Refer to Figure 7.4. If Sophia goes from making her choice based on gut feeling to making her choice based on cognition, she will:
A. increase orange and candy bar consumption.
B. decrease orange and candy bar consumption.
C. increase candy bar consumption at the expense of orange consumption.
D. increase orange consumption at the expense of candy bar consumption.
Answer: D
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The money multiplier is the
A) fraction of the monetary base that is kept in currency. B) number of times that the Fed conducts open market operations in a month. C) factor by which a change in the monetary base is multiplied to give the change in the quantity of money. D) factor by which a change in the deposits base is multiplied to give the change in the monetary base. E) proportion by which a change in the quantity of money changes the monetary base.
Refer to the payoff matrix below. Which of the following is the Nash Equilibrium?
A) Set Low Price/Set Low Price
B) Set High Price/Set Low Price
C) Set High Price/Set High Price
D) Set Low Price/Set High Price
According to the text, as compared to rich countries, most of the poor countries do not fare well because:
a. they have no oil. b. the people in these countries have limited property rights. c. access to education in these countries is very limited. d. high tariffs in these countries prevent international trade. e. they do not have any natural resources.
GDP per capita is
a. GDP/GDP deflator. b. GDP deflator/GDP. c. population/GDP. d. GDP/population.