If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes
a. MU/P of good X to increase, so the consumer now should buy more X to find a new optimal combination
b. demand for good X to increase
c. MU/P of good Y to increase, so the consumer now should buy more Y to find a new optimal combination
d. MU/P of good Y to decrease, so the consumer now should buy more Y to find a new optimal combination
e. the demand for good X and good Y will not change because utility does not depend on price
C
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In the case before her, Judge Thomas has heard claims by orange growers that to order a stop to orange growing in order to control a pest that thrives on oranges plants but does not harm them would result in a loss of profits of $3 million a year. The pest however causes $2 million of damages to trees owned by pulp manufacturers. The orange growers have not mentioned that they could control the pest at a cost of $1 million per year. High transactions costs have prevented the parties from reaching a private agreement. If she gives the property right to the
a. orange growers, they will then voluntarily control the pest. b. orange growers, they will not control the pest. c. pulp manufacturers, they will pay the orange growers to control the pest. d. pulp manufacturers, the orange growers would offer a side payment of at least $2 million to be able to grow oranges.
The person hired by a corporation's board of directors to run the day-to-day operations of the corporation is known as the
A) chief executive officer. B) owner-manager. C) corporate governor. D) chairman of the board.
If demand is unit elastic, an increase in price will lead to an increase in total revenue
Indicate whether the statement is true or false
When a U.S. citizen invests in foreign assets, the transaction is recorded in the balance of payments as a
a. credit in financial account. b. debit in the financial account. c. credit in the current account. d. debit in the current account.