Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is AD, then his income
A. decreased.
B. increased and the price of bell peppers decreased.
C. increased.
D. decreased and the price of bell peppers increased.
Answer: D
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Andrew's utility of wealth schedule is depicted in the above table. Andrew is offered a job as a cook which pays $10,000. He is also offered a job as a server which will pay $5,000 if tips are poor and $15,000 if tips are good
There is a 50 percent chance that tips will be poor and a 50 percent chance that tips will be good. Given the nature of Andrew's job offers and his utility of wealth schedule, Andrew will A) accept the offer to work as a server. B) accept the offer to work as a cook. C) be indifferent between working as a cook or a server. D) be unable to reach a decision about which offer to accept.
What gives a person a comparative advantage?
What will be an ideal response?
A natural monopoly has a. constant average costs cost over the relevant range of output. b. economies of scale over the relevant range of output
c. constant returns to scale over the relevant range of output. d. diseconomies of scale over the relevant range of output.
The price elasticity of demand between milk and soda is likely to be
a. negative, because the goods are complements b. positive, because the goods are complements c. negative, because the goods are substitutes d. positive, because the goods are substitutes e. 0, because the goods are not usually consumed by the same person at one time