Jen spent her weekly allowance of $110 on clothes and cosmetics. Assume that she had allocated $100 to shoes and $10 to lipsticks and is in equilibrium. What can you conclude from her purchase decisions?
a. She likes shoes ten times as much as she likes lipsticks
b. Jen liked the last pair of shoes ten times as much as the last tube of lipstick
c. Jen purchased hundred pairs of shoes for each tube of lipstick
d. She likes lipsticks ten times as much as she likes shoes
e. She purchased one pair of shoes for each tube of lipstick
b
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According to the aggregate expenditure model, when autonomous expenditure increases, equilibrium expenditure
A) increases by an equal amount. B) does not change because autonomous expenditures has no effect on equilibrium expenditure. C) does not change because only induced expenditures increase equilibrium expenditure. D) increases by a smaller amount. E) increases by a larger amount.
In perfect competition in the long-run equilibrium, can consumer surplus or producer surplus be increased? Explain your answer
What will be an ideal response?
Explain Tobin's idea of "Don't put all your eggs in one basket."
What will be an ideal response?
The Medicare Trustees created a report with predictions about the future based on
A. varied assumptions from optimistic to pessimistic. B. only realistic assumptions. C. only optimistic assumptions. D. only pessimistic assumptions.