Recently, you decided to super-size your fries at McDonald's. On the one hand, your decision to super-size considered the additional costs associated with the super-size, including the additional monetary, caloric and cholesterol intake, as well as the extra time you had to wait for those fries because a new batch was being prepared. On the other hand, you determined that the extra benefits from super-sizing included a few more mouthfuls of satisfaction from an increased portion of fries. The benefits clearly outweighed the costs since you chose to super-size. Which of the following does this illustrate?
a. Marginal analysis
b. The law of demand
c. Delayed gratification
d. Diminishing marginal utility
e. Random behavior
a. Marginal analysis
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The budget line facing a household includes information on
A. prices of two goods and household income. B. household income and the price of money. C. the price of one good and household income. D. the price of two goods but no information on household income. E. preferences of goods at various prices.
Which of the following expenditures would be included when we measure GDP?
A) Expenditures on illegal drugs B) Expenditures on illegal weapons C) Expenditures on medical services associated with drugs and crime D) All of the above. E) None of the above.
At a price of $8 per dozen, Chuy sells 40 dozen homemade tamales per week. When he raised his price to $12 per dozen, he still sold 40 dozen per week. Based on this information, the demand for his tamales is
A) unit elastic. B) perfectly elastic. C) perfectly inelastic. D) inelastic.
Assume a government likes a particular equilibrium along the contract curve. It can achieve that equilibrium through competition and income redistribution
What will be an ideal response?