Melanie has a choice of driving or flying from Durham, North Carolina to Knoxville, Tennessee for a one-day business trip. If she travels by air, she will be able to work seven hours in Knoxville, while if she drives, she will only have time to work four hours once there. Her expected income from each hour of work in Knoxville is $40 . If Melanie a rational decision maker, she will chose to fly
if and only if the price differential (air cost minus driving cost) is less than
a. $40.
b. $120.
c. $160.
d. $280.
B
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If the demand for a good is elastic, when the price increases, the
A) demand will decrease. B) quantity demanded will increase. C) quantity demanded will decrease by a smaller percentage than the price increased. D) quantity demanded will decrease by a greater percentage than the price increased.
Over a typical month, Ying Liao will balance spending time on meals, work, entertainment, study, sleep, and so on by ensuring that there is equality among the marginal
a. factor costs of each market work activity b. products of each market work activity c. revenues from each of the products sold d. wages of each hour worked e. expected net utilities of each activity
When is a buyer NOT willing to spend a lot of time and energy researching the market?
a) when buying a large quantity of goods b) when there are many identical products available c) when the savings to be made are small d) when prices vary but quality is the same
Economists once believed utility could be measured. This school of thought, known as utilitarianism, was developed by the English philosopher
A) Jeremy Bentham. B) Henri Leconte. C) John Lennon. D) Bernard Mandeville.