As used in the text, the "composite good" refers to:
a. large purchases that cannot be incrementally divided
b. an abstraction requiring more than a three-dimensional graph
c. income not spent on good X is two-dimensional graphical presentation
d. the notion that consumers cannot be modeled graphically
e. none of the above
Ans: c. income not spent on good X is two-dimensional graphical presentation
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A firm sells 20 units of a good at a price of $5 per unit. If the average cost of production of the good equals $3 per unit, the firm's revenue is:
A) $40. B) $60. C) $100. D) $120.
In Figure 4-5 above, at what point do we find the commodity market in equilibrium while the money market is not?
A) A B) B C) C D) D E) E
Joe consumes crawfish and shrimp. His utility function exhibits diminishing marginal utility of crawfish but the marginal utility of shrimp is constant. Will Joe's indifference curves be convex?
What will be an ideal response?
A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. This is an example of
A) cyclical unemployment. B) frictional unemployment. C) seasonal unemployment. D) structural unemployment.