When economists describe the theory of consumer choice, they
a. portray people as simple and methodical with perfectly predictable patterns of behavior.
b. assert that consumer's decisions are based on which goods and services give them the greatest utility within their limited incomes.
c. point out that consumers rarely consider utility in their purchase decisions; they look at other factors like convenience, peer behavior, and price.
d. assert that the retail price is the only variable consumers really consider in making their purchasing decisions.
e. admit that consumer behavior is random and there is no credible economic theory to explain the phenomenon.
b
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The relative price of a good is
A) an opportunity cost. B) equal to the money price of a good. C) equal to the price of that good divided by the quantity demanded of the good. D) what you get paid for babysitting your cousin.
The market demand for wheat is Q = 100 - 2p + 1 , where is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
A division of a firm is
a. a logical sub-organization of the firm b. a level within the firm in which a large degree of autonomy is vested c. a level of hierarchy within a firm that defines the scope of a manager d. all of the above
Which of the following resulted due to the budget reforms undertaken by the weaker economies to receive assistance?
A. Inflation rates decreased in the weaker economies. B. Unemployment rose dramatically in the weaker economies. C. Economic activity increased in the weaker economies. D. Taxes decreased dramatically in the weaker economies.