If the newspaper reported that wearing plaid clothing was a sure way to obtain good grades, students'
A) budget lines would shift rightward to compensate for the higher price of plaid clothing.
B) budget lines would rotate so that more plaid clothing would be purchased.
C) preferences would change in favor of more plaid clothing.
D) none of the above
C
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Use the following table to answer the question below.Units ConsumedTotal UtilityMarginal Utility00-1W20235X3Y10440ZThe value for Y is
A. 30. B. 25. C. 45. D. 40.
The law of diminishing marginal returns states that
A) as both labor and capital are increased, output increases at a decreasing rate. B) output increases at a decreasing rate as more capital is added. C) output decreases at a constant rate as more capital is added. D) as both labor and capital are increased, output does not change. E) output increases at a constant rate as more capital is added.
Which of the following will be the most likely impact of an unanticipated increase in the money supply?
What will be an ideal response?
A positional externality occurs when
A. one person builds a house which obstructs his neighbor's view. B. one person's increase in consumption lowers his neighbor's utility. C. a drunk person decides to drive. D. a polluter positions himself in a crowded city.