What is an inferior good?
A) a product of low quality that we do not want to purchase
B) a product for which demand increases when income increases, and demand decreases when income decreases
C) a product for which demand increases when income decreases, and demand decreases when income increases
D) a product that is complementary
E) a product that is a substitute for another, better good
C
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Bobby is buying slices of pizza and place a value of his utility of the first slice at $5; a second slice at $4, and a third slice at $2. If Bobby eats three slices of pizza for lunch, his total utility is equal to
A. $5 less what he had to pay. B. $2, since that’s the marginal utility of the last slice. C. the marginal utility of the third slice. D. $11.
It is possible for a team member to monitor the activities of all other team members without affecting his/her own productivity
Indicate whether the statement is true or false
Use the following graph to answer the next question.
Which of the following factors will shift AS1 to AS3?
A. A decrease in household indebtedness B. An increase in productivity C. A decrease in business taxes D. An increase in input prices
It is assumed that the marginal benefit of air cleanliness falls with the degree of cleanliness since
A) the marginal cost of air cleanliness increases. B) air cleanliness is a public good and not a private good. C) the marginal utility of air cleanliness falls with the degree of cleanliness. D) the generation of pollution should be considered an externality.