Evaluate the following statement, "Warren Buffet is the second richest person in the world. He doesn't face any constraint on his ability to purchase commodities he wants."
All people face scarcity of resources, regardless of how rich they are, because wants are assumed to be infinite.
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The interpretation of the slope coefficient in the model Yi = β0 + β1 ln(Xi) + ui is as follows:
A) a 1% change in X is associated with a β1 % change in Y. B) a 1% change in X is associated with a change in Y of 0.01 β1. C) a change in X by one unit is associated with a β1 100% change in Y. D) a change in X by one unit is associated with a β1 change in Y.
Keynesians identify three principal motives for demanding money. They are the
a. transactions motive, precautionary motive, and liquidity motive b. transactions motive, precautionary motive, and convertibility motive c. transactions motive, speculative motive, and volatility motive d. transactions motive, speculative motive, and liquidity motive e. transactions motive, speculative motive, and precautionary motive
Based on the following information, what is the amount of public saving? ReceiptsExpendituresFederal Government2,5002,000State and Local Governments1,5001,500
A. +2,500 B. -300 C. +200 D. +3,700
When the price of one good changes, while the prices of all others stay the same:
A. the change in relative prices is reflected in a change in the slope of the budget constraint. B. the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good. C. the change in relative prices can be thought of as a change in the opportunity costs of each good. D. All of these statements are true.