Suppose that a market basket of two goods is changed by adding more of one of the goods and subtracting one unit of the other. The consumer will:
A) rank the market basket more highly after the change.
B) rank the market basket more highly before the change.
C) rank the market basket just as desirable as before.
D) any one of the above statements may be true.
D
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Which of the following transactions would take place in the underground economy?
A) Samuel tells his wife he is going to work but really goes to the local casino. B) Tanisha bought a tablet computer for $269 but decided to sell it to her sister instead of keeping it. C) Laurie buys a case of wine at a liquor store, not realizing that 15% of the purchase price goes to the government as tax revenue. D) Bailey makes beef jerky and sells it at a local flea market for cash to avoid paying taxes.
A speculator becomes the floating-rate payer in an interest-rate swap. She hopes that
A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.
If (T? G) = (X? IM), then (S? I)
A. is greater than zero. B. is zero. C. is less than zero. D. cannot be calculated.
Contestable markets improve the performance of imperfect markets with
a. government regulations. b. the threat of entry. c. advertising. d. tacit collusion.