Suppose shoppers typically pay twice as much for frozen "convenience" foods compared to similar dinners they could prepare themselves. An economist would say
A) the purchase is inefficient because the consumer doesn't really need to pay twice as much for essentially the same dinner.
B) the purchase is inefficient because the frozen dinner is of even lower quality than the homemade dinner, yet twice as expensive.
C) the purchase is efficient if the consumer feels the savings in preparation time justifies the higher price.
D) the purchase is efficient, but the consumer is still probably behaving irrationally.
C
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We expect PPP to hold better
A) for annual data than monthly data. B) for high-inflation countries. C) in the long run. D) All of the above.
Refer to Scenario 14.2. What is the marginal revenue product of the 4th worker?
A) 20 B) 25 C) 30 D) 32.5 E) 35
Refer to the above figure. At a price of three cents, a(n) ________ of bubble gum will exist in the market
A) surplus B) shortage C) equilibrium quantity D) excess quantity supplied
A decrease in the price level in an economy will _____
a. shift the aggregate demand curve to the right b. shift the aggregate demand curve to the left c. increase the level of aggregate quantity demanded d. decrease the level of aggregate quantity demanded e. shift the aggregate expenditure line downward