A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf game that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely:
A. Rent the movie instead of playing miniature golf
B. Play miniature golf instead of renting the movie
C. Be indifferent between the movie and the miniature golf game
D. Not have enough basis for making a utility-maximizing decision
B. Play miniature golf instead of renting the movie
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Which of the following curves reflects the idea that in the long run, output is determined only by the factors of production and given technology?
A) the aggregate demand curve B) the long-run aggregate supply curve C) the Keynesian aggregate supply curve D) the market supply curve
Scarcity implies that
A) the satisfaction of one person's want means another person's want can also be satisfied. B) the satisfaction of one person's want means another person will be more than satisfied. C) the satisfaction of one person's want means another person's want cannot be satisfied. D) no person's wants can be satisfied.
Which of the following is an example of a moral hazard?
a. A student committing suicide after failing in an examination. b. A housekeeper leaving a house unlocked after insuring it against burglary. c. An exporter delivering faulty products after receiving a certain fraction of the total payment. d. A person deriving utility from a commodity without paying for it.
Economists disagree on most economic issues facing an economy
a. True b. False Indicate whether the statement is true or false