Refer to the scenario above. If both individuals are offered movie tickets worth 40 utils today instead of the gift voucher, then which of the following statements is true?
A) Both Susan and Jim will prefer to retain the gift voucher.
B) Both Susan and Jim will prefer the movie tickets over the gift voucher.
C) Susan will prefer the gift voucher, while Jim will prefer the movie ticket.
D) Jim will prefer the gift voucher, while Susan will prefer the movie ticket.
C
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In order to determine if the quantity of goods and services that an hour's work can buy has increased or decreased between 2000 and 2012, one should compare the
A) 2000 nominal wage with the 2012 nominal wage. B) 2000 real wage with the 2012 nominal wage. C) 2000 real wage with the 2012 real wage. D) 2000 nominal wage with the 2012 real wage. E) 2000 nominal wage with the 2012 nominal wage and the 2000 real wage with the 2012 real wage because both are important factors determining if workers can buy more or fewer goods with an hour's work.
The consumption function shows
a. how fast the economy is consuming its capital. b. that the amount of national income determines the rate at which the economy consumes its resources. c. that households’ incomes determine how much the households will spend for consumer goods. d. the rate at which people actually use up their consumer goods.
When the rate of growth of per capita income of poorer countries is higher than that of richer countries, it leads to economic convergence
a. True b. False Indicate whether the statement is true or false
When a firm has many competitors selling the same good, in order to sell more of the good,
A. it must, ironically, increase prices. B. it must advertise. C. it must reduce the price it charges. D. it only needs to produce more of the good.