When faced with all available alternatives, the consumer will select the one that is ranked the highest. This principle is called:
A. the choice principle.
B. the ranking principle.
C. the consumption principle.
D. the more-is-better principle.
A. the choice principle.
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Firms in a cartel have an incentive to cheat on the cartel agreement because they suspect the other firms are cheating as well.
Answer the following statement true (T) or false (F)
The market demand for wheat is Q = 100 - 2p + 1pb + 2Y. If the price of wheat, p, is $2, and the price of barley, pb, is $3, and income, Y, is $1000, the income elasticity of wheat is
A) 2 ? (1000/2099 ). B) 2. C) 1/2 ? (1000/2099 ). D) cannot be calculated from the information provided.
The money supply is very sensitive to changes in the rate of interest
a. True b. False Indicate whether the statement is true or false
As both the budget and regulatory powers of government grow, public choice analysis indicates that individuals and groups will find it in their interest to
a. increase their efforts devoted toward market production. b. spend less time attempting to secure redistribution through government. c. spend more time informing themselves about political issues, so they can cast a well-informed vote. d. spend more time rent seeking.