As shown in the above table, Sam enjoys sailing and skiing equally well. Which of the following is TRUE?
A) Sam will not consume the same number of hours of sailing and skiing if the price per hour of sailing is more than that of skiing.
B) If the prices per hour of sailing and skiing are the same, Sam will not spend the same number of hours at each activity.
C) The marginal utility of the 3rd hour of either sailing or skiing is 120.
D) None of the above is true.
A
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Automatic stabilizers are so-named because
A) they are automatically undertaken by the Federal Reserve Bank to reduce budget deficits. B) they occur automatically when real GDP changes. C) the policy suggestions of the Council of Economic Advisors are automatically followed. D) the policy suggestions of the Office of Management and Budget are automatically followed.
Economic theory is necessary and extremely important because of its relationship to economic policy
a. True b. False Indicate whether the statement is true or false
If the option holder is the individual with the options, why is anyone an option writer?
What will be an ideal response?
A decrease in income causes demand for a normal good to ________, and an increase in income causes demand for an inferior good to ________.
Fill in the blank(s) with the appropriate word(s).