Bobby makes a New Year's resolution to lose weight. On January 3rd, he decides to go to Ben amp; Jerry's for ice cream instead of going to the gym. Using the concept of revealed preference, economists would most likely conclude that Bobby:
A. is not a rational individual.
B. actually gains more utility from ice cream than working out.
C. has changed his preferences.
D. has no choice over the actions he takes.
B. actually gains more utility from ice cream than working out.
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If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 1.5 francs per dollar, then the franc depreciates from ________ U.S. dollars per franc to ________ U.S. dollars per franc
A) 0.80; 0.67 B) 0.67; 0.80 C) 0.50; 0.33 D) 0.33; 0.50
If potential GDP for the third quarter of 2013 = $20.4 billion, and the deviation from potential GDP for the third quarter of 2013 = $1.6 billion, then Real GDP for the third quarter of 2013 equals
A) $6.5 billion. B) $18.8 billion. C) $22 billion. D) $32.64 billion.
The federal government's revenue has declined steadily relative to GDP since 1960
a. True b. False
Firms would like to know the price elasticity of demand for their products because it helps determine the effect of price changes on the firms'
a. property taxes b. competitors' profits c. quantity supplied d. revenues e. total costs