Are we really rational consumers? If so, how do you explain the fact that every Thanksgiving many of us eat until we get sick! The answer must be that
a. the negative utility associated with being sick is greater than the positive utility of getting sick
b. at the time of the eating, the utility of the turkey and stuffing minus the utility of the anticipated after-eating discomfort is still positive
c. the utility of the turkey and stuffing at the time of eating minus the utility of the after-eating discomfort felt after the meal was eaten is still negative
d. the total utility of eating the meal far outweighs the marginal utility of the discomfort felt after the meal
e. the marginal utility of eating the meal far outweighs the total utility of the discomfort felt after the meal
B
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If the value added of a firm is positive, will the firm necessarily have positive profits?
What will be an ideal response?
When Mary earned $3,200 per month, she bought 2 concert tickets each month. Now her monthly income is $5,600, and the number of concert tickets she purchases has risen to 3 per month
Mary's income elasticity of demand for concert tickets equals ________ and the tickets are a(n) ________ good for Mary. A) -1.36; normal B) -0.21; inferior C) +0.21; complementary D) +0.73; normal
People cannot be prevented from using a good if the good is
a. a private good or a public good. b. a private good or a common resource. c. a public good or a common resource. d. a public good or a club good.
In the parable of the leaky bucket, a fundamental problem with government redistribution programs is identified. As long as the government only has "leaky buckets" at its disposal,
a. the costs of welfare programs will exceed the benefits. b. it should not try to reach complete equality in income. c. income equality will be the best policy option. d. equality of economic opportunity will reduce society's utility.