As a result of our ____________ incomes and ____________ wants, it is in our self-interest to economize or pick and choose goods and services that maximize our satisfaction.
a. limited; finite
b. unlimited; insatiable
c. limited; insatiable
d. scarce; satiable
c. limited; insatiable
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Public goods are those for which
A) individuals who do not pay can be excluded from consuming the good. B) individuals who do not pay cannot be excluded from consuming the good. C) external costs exist. D) no external costs exist.
________ describes the relationship between consumption spending and disposable income
A) The liquidity trap B) The consumption function C) Household wealth D) The paradox of thrift
Autarchy as used in the text refers to
(a) an economy that does not trade. (b) an economy that trades primary products in exchange for manufactures. (c) developing country dictatorships. (d) the caste system and related social structures.
Suppose you only consume rice and bananas. Can both of these goods be Giffen goods in your consumption?
A) Yes, this is possible B) No, at least one of the goods must be normal C) No, they both can be inferior, but at least one of the goods cannot be a Giffen good D) We need more information about the goods to answer this question