After browsing several pairs of shoes, Bob buys a pair of Nike running shoes. Economists would say that:
A. Bob is revealing his strong distaste for New Balance running shoes.
B. Bob made a poor choice, if he really prefers Adidas.
C. Bob will get more utility per dollar from the Nike running shoes than any other in the store.
D. Bob is revealing he will always choose Nike over any other shoe brand.
Answer: C
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A transfer payment is a payment by the government to an individual
A) for an investment good. B) for which the government does not receive a good or service in return. C) for a debt owed. D) for a service. E) for a consumption good.
Suppose that the market for salad dressing is in equilibrium. Then the price of lettuce rises. What will happen?
A. The quantity demanded of salad dressing will increase. B. The supply of salad dressing will decrease. C. The demand for salad dressing will decrease. D. The price of salad dressing will rise.
Natural pollutants
a. include such releases as hazardous chemical wastes b. arise from nonartificial processes in nature, such as pollen c. refer to those associated with human activity such as fossil-fuel combustion d. all of the above
Which of the following statements is true?
a. Competitive markets result in the socially efficient price and quantity when externalities exist. b. Command-and-control regulations set an environmental goal and dictate how the goal will be achieved. c. Economists prefer command-and-control regulations to incentive-based pollution programs. d. An effluent tax is a tax imposed on rich people.