Why does a consumer spend the entire budget?
What will be an ideal response?
The more goods and services a person consumes, the higher the person's utility. By spending his or her entire budget, the person is consuming the maximum quantity of goods and services, which means the utility can be at its maximum.
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Spending more time commuting in exchange for a lower monthly rent refers to a(n):
A) barter. B) trade-off. C) externality. D) monetary exchange.
Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is excludable and not rival in consumption?
a. pizza, cable TV b. pair of pants, clean air c. clean air, mathematical theorem d. basic research, fireworks display
The labor force is defined as
A) the sum of the employed and unemployed. B) the total number employed. C) the total number of working age individuals in the population. D) the sum of the number of employed, unemployed and discouraged individuals.
When the Gizmo Company could sell a gizmo for $10, it produced 2,500 per month. More recently, the price of a gizmo has fallen to $9 and so Gizmo is only producing 2,000 units per month. What is the price elasticity of supply for gizmos?
A. -2.11 B. -0.47 C. 0.47 D. 2.11