A diagram of an individual's utility from income will be a line with a decreasing slope if the individual is risk-loving.
Answer the following statement true (T) or false (F)
False
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Which of the following statements about economic models is TRUE?
A) A good economic model is complex. B) A good model does not rely on any assumptions. C) Every model is based on a set of assumptions. D) Economic models are designed to explain what people need.
A table showing how much lemonade consumers are willing to buy at different prices would be best described as a
A. consumption table. B. supply schedule. C. demand schedule. D. equilibrium table.
Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3Dozens of Oysters per DayTotal UtilityMarginal Utility160?2104?3134?4152?5?8Number ofBeers per DayTotal UtilityMarginal Utility140?270?394?4114?5?14Refer to Table 6.3. The total utility of five beers per day is
A. 70. B. 128. C. 184. D. indeterminate from this information.
Faith and Hope are 30-year-old identical twins. The only difference between them is their credit score. Faith has a proven record of repaying debts. Faith can borrow money at 4.5 percent. Hope has often missed debt payments. Hope can borrow at 8.5 percent.They are considering enrolling in an evening MBA program. They plan on completing the program in two years. Assume the annual tuition is $16,000 for both years. They also anticipate that the nonmonetary costs of obtaining an MBA will be $40,000 per year. The twins anticipate that after graduation in two years, their earnings will be $10,000 per year higher until they retire at age 62. Should Faith enroll in the evening MBA program? Should Hope enroll in the evening MBA program?
What will be an ideal response?