To assure a well-defined solution to the consumers' intertemporal choice problems, we must assume that consumers' preferences exhibit the properties that
A) consumers are all identical and that more is always preferred to less.
B) more is preferred to less and that consumers prefer diversity.
C) consumers like diversity and that more is sometimes preferred to less.
D) more is sometimes preferred to less and that first-period consumption and second-period consumption are both normal goods.
B
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The law of demand states that:
A. as the price of a good increases, more units are demanded. B. there is a direct relationship between the price of a good and the quantity of the good produced. C. there is a negative relationship between the price of a good and the quantity of the good demanded. D. there is an increase in the need for a good as the price of the good increases.
Refer to the data provided in Table 17.2 below to answer the following question(s). The table shows the relationship between income and utility for Sue.Table 17.2 IncomeTotal Utility $00$20,00020$40,00040$60,00060$80,00080Refer to Table 17.2. Sue earns $40,000 annually. She has the opportunity to bet her entire salary on the upcoming super bowl. If Sue takes the bet, she will pick the Patriots. She believes that the Patriots have a 50-50 chance of winning the game. If the Patriots win, Sue will win $81,000 but if they lose she loses her entire salary ($0). Will Sue take the bet?
A. yes B. no C. maybe D. indeterminate from the given information
Holding money to meet unplanned expenditures is
A) the precautionary demand for money. B) the transactions demand for money. C) the asset demand for money. D) the capital demand for money.
What is one way to offset the economic stability loss due to fixed exchange rates?
What will be an ideal response?