The assumption that preferences are complete:
A) means that a consumer will spend her entire income.
B) is unnecessary, as long as transitivity is assumed.
C) recognizes that there may be pairs of market baskets that cannot be compared.
D) means that the consumer can compare any two market baskets of goods and determine that either one is preferred to the other or that she is indifferent between them.
D
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Arnie's Airlines is a monopoly airline that is able to price discriminate. If Arnie's decides to price discriminate, then
A) Arnie's profit increases. B) consumer surplus increases. C) Arnie's revenues decrease. D) Arnie's sells fewer tickets. E) Arnie can no longer set a price that depends upon the buyer's willingness to pay.
The Navigation Acts:
a. placed tariffs on the import of British goods by the colonies. b. prohibited trade between the British West Indies and the colonies. c. allowed colonial trade on British ships commanded by foreign captains. d. encouraged trade between the colonies and the Dutch. e. None of the above is correct.
An option may add value to a transaction because:
a. interest charges are reduced. b. the price of the good is reduced. c. additional information may become available. d. options provide buyers with monopsony power.
The supply curve illustrates that firms:
A. increase the quantity supplied of a good when its price rises. B. decrease the quantity supplied of a good when input prices rise. C. decrease the supply of a good when its price rises. D. increase the supply of a good when its price rises.