As we move to higher indifference curves, compensated demand (or MWTP) curves shift to the right.
Answer the following statement true (T) or false (F)
False
Rationale: This is true only for normal goods -- for inferior goods, they shift to the left.
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Fill in the blank: When a chooser asks herself "Is it worth it?," she is trying to evaluate the ________ of a particular project or plan of action
A) technical efficiency B) objective efficiency C) economic efficiency D) engineering efficiency
The long-run equilibrium of a monopolistic competitor differs from the long-run equilibrium of a perfect competitor in that
A) the monopolistic competitor makes economic profits. B) the monopolistic competitor sets price equal to marginal cost. C) the monopolistic competitor produces at the minimum point of its average total cost curve. D) the monopolistic competitor charges a price that exceeds marginal cost.
Government bureaucrats want larger budgets
A. because salaries are sometimes tied to budget size. B. to fulfill an "empire building" tendency. C. because it may be necessary to ensure marginal benefits of output equal marginal costs. D. all of these answer options are correct.
Give an example of how economics can be used in either a marriage, politics, or education.
What will be an ideal response?