Consider the budget line in the above figure. If the consumer has income of $240, what is the relative price of movies?
A) .42 books
B) 2.4 books
C) $10 per movie
D) $24 per movie
A
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In a multiplayer game where there are two equally-enjoyable choices of what to do, and everyone wants to do what everyone else is doing, only one Nash equilibrium is stable
Indicate whether the statement is true or false
Which of the following would be classified as a public good?
A) state lotteries B) telephone service C) cable TV programming D) national defense
The Lorenz curve maps:
A. the cumulative percentage of the population against the cumulative percentage of income earned by those people. B. each quintile of the population in order of income-earned against the average income earned by those people. C. GDP per capita against what people really earn by quintile. D. None of these describes what the Lorenz curve maps.
If coal and oil are substitute inputs in the production of electricity, an increase in the price of oil
a. will increase the demand for coal. b. will reduce the demand for coal. c. will increase the supply of coal. d. will reduce the supply of coal. e. will not affect the demand for coal.