Refer to Table 10-7. Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice. How many of each good will he consume when he maximizes his utility?
A) 2 glasses of beer, 3 slices of pizza B) 3 glasses of beer, 2 slices of pizza
C) 4 glasses of beer, 5 slices of pizza D) 2 glasses of beer, 1 slice of pizza
B
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What are the three limitations on human rationality that behavioral economics emphasizes?
What will be an ideal response?
Refer to Scenario 12.2. What is the profit maximizing price?
A) 205.72 B) 240 C) 210 D) all of the above E) none of the above
The essence of a prisoner's dilemma setting is that if both person A and person B do what is best for each of them,
A) they end up in a position that is "the best" for each of them. B) they end up in a position that is "the worst" for each of them. C) one ends up in a position that is "the best" for him and the other ends in a position that is "the worst" for him. D) they end up in a position from which each would prefer to move away. E) none of the above
If the domestic consumers of a good benefit from free trade, it suggests that the country:
A. is a net exporter of that good. B. is not able to produce that good. C. is a net importer of that good. D. has a comparative advantage in that good.