If the more-is-better principle holds, two different consumption bundles can't be equally attractive unless:
A. they contain the same amounts of each good.
B. the consumer is unable to rank both bundles.
C. as the consumer gives up some of one good, the consumer is given more of the other good.
D. they each cost the same amount to purchase.
C. as the consumer gives up some of one good, the consumer is given more of the other good.
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What are the advantages of setting up a proprietorship or partnership as opposed to a corporation?
What will be an ideal response?
Comparing a discount bond and a coupon bond with the same maturity
A) the coupon bond has the greater effective maturity. B) the discount bond has the greater effective maturity. C) the effective maturity cannot be calculated for a coupon bond. D) the effective maturity cannot be calculated for a discount bond.
Suppose that Big-Cat and Fat-Cat are rival cat food brands, and the price of Fat-Cat is reduced. Following this price drop, is there a shortage or a surplus of Big-Cat at the old price of Big-Cat?
a. Surplus. b. Neither, a price drop can not cause a shortage or surplus. c. Neither, equilibrium exists. d. Shortage.
Refer to the data for a utility-maximizing consumer. Assume that new product Z doesn't exist. How many units of X and Y will this consumer buy, given his or her $12 budget?
A. 5 of X and 7 of Y.
B. 7 of X and 5 of Y.
C. 6 of X and 6 of Y.
D. 5 of X and 6 of Y.