In which two markets did an asset bubble form that led to a financial crisis in 2008?
A. South Sea Company and tulips
B. Housing and automobiles
C. Mortgage-backed securities and tulips
D. Housing and mortgage-backed securities
Answer: D
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In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice should specialize in the production of
A) shoes. B) bookshelves. C) either shoes or bookshelves. D) neither shoes nor bookshelves.
The supply curve is a __________ line that reflects the _______ relationship between price and quantity supplied.
A. downward-sloping; inverse B. upward-sloping; inverse C. downward-sloping; direct D. upward-sloping; direct
Carvel advertises a football-shaped ice cream cake for $7; you can buy a second one for only $4 . What do they know about consumer preferences?
a. Consumers would never buy a second ice cream cake. b. Two cakes are worth less to the consumer than one. c. Marginal utility of ice cream cakes diminishes. d. Consumers only value the first cake at $4. e. Consumers value all cakes they eat at $4.
Hoe does etiquette help in transaction of goods between two parties?