This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
Considering the information in the table shown, if we assume Jack is a rational utility maximizer, then we can predict he will buy which bundle with his $10?
A. A
B. B
C. C
D. D
C. C
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When the government runs a deficit, which of the following is true?
A) G > T + TR B) T < G + TR C) T > TR - G D) G > TR - T
In a survey of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to
A) remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there were no other hardware stores in the same area. B) go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store. C) sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair. D) raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.
When the economy is already at relatively high levels of employment, if policy makers try to further reduce the unemployment levels through expansionary policies, what will be the likely result?
When GDP decreases, consumption spending increases.
Answer the following statement true (T) or false (F)