A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If the price of shelter increases by 2 and consumption of shelter remains constant at 20, how will consumption of food change?
A) decrease by 10
B) decrease by 20
C) decrease by 40
D) decrease by 60
C
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Which of the following is TRUE?
A) Economic efficiency occurs if the maximum feasible amount of output is achieved from a given quantity of inputs. B) Economic efficiency depends only on what is feasible. C) If production is technologically efficient then it must be economically efficient. D) None of the above statements are correct.
Which of the following is an example of conspicuous consumption?
A. Purchasing an expensive automobile to impress others B. Purchasing of hip-hugger pants because pop stars wear them C. Avoiding cheap computers because low price indicates low quality D. Purchasing fast food because it is cheap and convenient
Refer to Figure 22.3 for a perfectly competitive firm. At a market price of $23, profit per unit is maximized at an output of
A. 39 units. B. 31 units. C. 13 units. D. 25 units.
One of the strongest motivations for holding the Bretton Woods Conference was to design new international institutions that would
A) contain communism. B) help countries avoid the mistakes of the 1920s and 1930s. C) provide a collective defense security for Western Europe and North America. D) ensure that world prices were not rising too rapidly.