An item has utility for a consumer if it
A) generates enjoyment or satisfaction. B) is scarce.
C) is something everyone else wants. D) has a high price.
A
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According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good X is ________ units of Good Y for Chen and ________ units of Good Y for Holly
A) 25; 100 B) 0.5; 2.5 C) 2; 0.4 D) 100; 25
Which of the following statements correctly identifies the difference between an autoregressive model and a vector autoregressive model?
A. In an autoregressive model, the dependent variable is expressed as a function of its own lag, whereas in a vector autoregressive model, the dependent variable is expressed as a function of the lag of an explanatory variable. B. In an autoregressive model, the dependent variable is expressed as a function of the lag of an explanatory variable, whereas in a vector autoregressive model, the dependent variable is expressed as a function of its own lag. C. In an autoregressive model several series are modeled in terms of their own past, whereas in a vector autoregressive model only one series is modeled in terms of its own past. D. In an autoregressive model one series is modeled in terms of its own past, whereas in a vector autoregressive model several series are modeled in terms of their past.
How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?
A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost. B) In the economy represented by a straight-line production possibilities curve, neither good is scarce. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.
A beneficial supply shock would cause the FE line to
A. shift to the right. B. shift to the left. C. remain unchanged. D. remain unchanged if the shock is temporary; shift to the right if the shock is permanent.