Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint?
A. 2
B. 1
C. 4
D. ½
Answer: B
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If you wanted to investigate whether a country was successfully developing, what information would you look for? What qualifications might you have to make to the data you have put together?
What will be an ideal response?
The equilibrium level of regulation is where the marginal political benefits to the special interests are equal to the marginal political costs of the foregone regulation
a. True b. False
In equilibrium in a mixed market:
A. the percent of low quality goods on the market equals the buyers' estimate of the percent of low-quality goods on the market. B. the percent of low quality goods on the market equals the sellers' estimate of the percent of low-quality goods on the market. C. 50% of the goods on the market are low quality and 50% are high quality. D. all low-quality goods have been driven out of the market.