Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the quantity of water and the quantity of hamburgers that will maximize the consumer's total utility?
A) 5 bottles of water and 4 hamburgers
B) 4 bottles of water and 4 hamburgers
C) 1 bottle of water and 6 hamburgers
D) 6 bottles of water and 6 hamburgers
A
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The requirement for a double coincidence of wants occurs when
A) there is inflation. B) there is deflation. C) a system of barter is used. D) the medium of exchange is liquid.
Economists do not think price discrimination is unfair because
A. people with higher incomes should pay higher prices than those with lower incomes. B. if the prices charged to some buyers get too high, those who are able to buy at lower prices will just resell their purchases to the people facing the high prices. C. economists are concerned with efficiency rather than fairness. D. more buyers are able to purchase the good with price discrimination, some buyers pay a lower price than if there were a single price, and sellers earn higher profit than if there were a single price.
The consumption schedule shows:
A. a direct relationship between aggregate consumption and accumulated wealth. B. a direct relationship between aggregate consumption and aggregate income. C. an inverse relationship between aggregate consumption and accumulated financial wealth. D. an inverse relationship between aggregate consumption and the price level.
Refer to the figure above. What is the initial equilibrium wage rate and employment level?
A) $60 and 20 units of labor B) $40 and 40 units of labor C) $50 and 40 units of labor D) $20 and 40 units of labor