Betty is out on a first date with Barney. She decides to order the garden salad with dressing on the side in an effort to make a good first impression, even though she prefers leg of lamb. Economic theory:
A. cannot explain why someone would choose a meal that brings her less utility than another.
B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression.
C. would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him.
D. cannot be used to explain matters of the heart.
B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression.
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A principle that economists emphasize is that the ____ of decision makers are always limited.
A. ideas B. goals C. resources D. opportunities E. offices
Taxes can adversely affect free exchange
Indicate whether the statement is true or false
Steve has two goods he can spend his income on, skiing and skating, and his marginal utilities from each are in the table above. The price of each unit of skiing is $10 and the price of each unit of skating is $5. Steve has $40 to spend
What quantities of skiing and skating should Steve consume to maximize his utility? A) 4 units of skiing and 4 units of skating B) 2 units of skiing and 4 units of skating C) 1 unit of skiing and 2 units of skating D) 5 units of skiing and 5 units of skating
The recovery phase of the business cycle ends when
A. we reattain the level of the previous peak. B. we reattain the level of the previous trough. C. we go into the next recession. D. we are back at full employment.