Based on Figure 3.1, it can be inferred that:
A) Alvin does not consider good X as "good."
B) Alvin will never purchase any of good Y.
C) Alvin regards good X and good Y as perfect substitutes.
D) Alvin regards good X and good Y as perfect complements.
E) none of the above
C
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Indicate whether the statement is true or false
Why was the Fed reluctant to rescue insolvent banks?
A) It thought it may lead to moral hazard. B) It thought it may lead to adverse selection. C) It thought they were still liquid. D) It did not think they were insolvent.
If the price of videotapes decreases, then the _____
a. marginal utility of videotapes will decrease b. marginal utility of videotapes will increase c. marginal utility per dollar of videotapes will decrease d. marginal utility per dollar of videotapes will increase e. total utility of videotapes will increase
If the earnings of Chopo Co are lower than expected, the forecasts will be revised downward and the price of the company's stock will decline
a. True b. False Indicate whether the statement is true or false