Figure 5-14
Martha initially buys the combination of pens and pencils shown as A in Figure 5-14. After the prices of both goods change, she buys combination B. It must be true that
a.
Martha prefers A to B.
b.
Martha prefers B to A.
c.
Martha is indifferent between A and B.
d.
Martha's preferences between A and B cannot be determined from the information given.
b
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From the price-setter's point of view, the appropriate cost of a good is
A) the inventory cost. B) the marginal cost. C) the sunk cost. D) the wholesale cost.
Inflation costs are minimized under which inflation rate?
a. -20 percent b. 5 percent c. 15 percent d. 575 percent
According to the information contained in the table, Brazil has an absolute advantage in
A. coffee, while Columbia has an absolute advantage in hot dogs.
B. both coffee and hot dogs.
C. neither coffee nor hot dogs.
D. hot dogs, while Columbia has an absolute advantage in coffee.
Sonia has a BA in art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:
A. underemployed. B. employed. C. unemployed. D. a discouraged worker.