Ashley recently got a 15 percent raise. She now purchases 7.5 percent more coffee. Ashley's income elasticity for coffee is
a. 0.5.
b. 0.75.
c. 1.5
d. 2.
A
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If a game is a prisoners’ dilemma, neither player has dominant strategy.
Answer the following statement true (T) or false (F)
Procrastination, addiction, and honesty
a. may be explained by preferences that are not transitive b. violate the economist's assumption that "more is better" c. help to explain why the substitution effect is more powerful than the income effect d. are often inconsistent with narrowly defined rationality e. are inferior economic "goods".
Consumers maximize their total utility subject to a budget constraint if the
a. total utility is increasing and marginal utility decreasing b. dollar amount (value) spent on each good is the same c. total utility gained from each good is equal d. marginal utility of the last dollar spent on each good is equal e. total utility equals the total budget constraint
The notion of ________ is that through income redistribution, the rich sacrifice a little and the poor gain a lot.
A. Rawlsian justice B. distributional justice C. labor value D. utilitarian justice