Return to the case of Jan, the hyperbolic discounter from the previous question. What values of B and C will lead her to be consistent with a plan not to undertake the action?
a. C < B < 2C.
b. B < C.
c. B > 2C.
d. B < C < 2B.
b
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Events that arise spontaneously and unpredictably, often as a result of changes in consumer and business confidence regarding the economy, are called
A) supply shocks. B) demand shocks. C) recessions. D) externalities.
The marginal product of labor (MPL) measures ________
A) by how much labor increases for each additional unit of output B) by how much labor increases for each additional unit of capital C) by how much total factor productivity increases for each additional unit of labor D) by how much labor increases for each additional unit of productivity E) by how much output increases for each additional unit of labor
Firm A producing one good acquires another firm B producing another good. The cross price elasticity of demand for the goods owned by each firm is -1.4 . Holding other things constant, the acquiring firm should
a. Raise prices on both goods b. Lower prices on both goods c. Raise price on the acquired good only d. Need more information
Engel's law states that income elasticities are
a. negative for normal goods b. positive for inferior goods c. higher for food in industrialized nations than in nonindustrialized nations d. less than one for food e. usually about equal to one