Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is $10 and the price of a CD is $20. If Bobby maximizes utility from these goods, his total utility is ________ units
A) 705
B) 750
C) 770
D) 880
C
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Newly-privatized firms in Eastern Europe require __________ investor monitoring, which suggests the relative desirability of a __________-oriented financial system
A) heavy; banking B) heavy; markets C) little or no; banking D) little or no; markets
Paul wins a $500 watch in a sweepstakes and decides to keep it, even though he says he would have preferred to win $500 cash. Knowing Paul's preferences, how can we explain his decision to keep it?
A. Paul has a cognitive bias, and it leads him to value the watch more because he owns it. B. Paul has a cognitive bias; he is ignoring a nonmonetary opportunity cost of already owning the watch. C. Paul's implicit cost of ownership makes him feel as though he should keep the watch. D. All of these are true.
In a competitive market economy, a resource in short supply will be allocated
a. so that each firm gets enough to keep producing some portion of its output. b. according to how much each firm purchased before the shortage. c. to those firms that can make the most profitable use of it. d. by government regulation.
Which of the following is an example of double counting in regards to GDP?
a. counting the value of two products often bought together, such as chips and dip b. counting the value of sweaters that are inferior quality c. counting the value of plastic used to make model kits as well as the final kit itself d. counting the value of products that have two or more components such a TV with a remote control