Which goods would usually be an inferior good?
a. Steak
b. Generic beer
c. Theater tickets
d. French wines
Answer: b. Generic beer
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Individuals will increase their saving as
A) the interest rate falls. B) the interest rate increases. C) the rate of unemployment increases. D) business investment falls.
If property rights for air and water exist, then polluters bear the costs of pollution
Indicate whether the statement is true or false
Jamar used to work as an office manager, earning $40,000 per year. He gave up that job to start a life-coaching business. In calculating the economic profit of his life-coaching business, the $40,000 income that he gave up is counted as part of the life-coaching business's
a. total revenue. b. opportunity costs. c. explicit costs. d. marginal costs.
Lulu consumes only candy and cookies; she is currently buying more cookies than candy with her limited income. The last bag of candy gave Lulu the same additional utility as the last bag of cookies, and the prices of candy and cookies are the same. Lulu
A. is maximizing satisfaction given a limited income because the marginal utility per dollar is the same for candy and cookies. B. is maximizing utility given a limited income because the prices of candy and cookies are the same. C. could get more satisfaction from the same income by buying more candy and less cookies. D. could get more satisfaction from the same income by buying more cookies and less candy.