Lisa views pizzas and burritos as goods. If she prefers a bundle of 4 burritos and 4 pizzas to a bundle of 4 burritos and 5 pizzas, which property of consumer preference is violated? What change in the assumptions could lead a rational consumer to prefer the first bundle?
What will be an ideal response?
The property of more-is-better is violated. However, if pizza is a bad, then a rational consumer would prefer the first bundle.
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Which of the following statements is true?
A) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied. B) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, the marginal utility of the third unit is
A. 30. B. 5. C. 6. D. 3.
To combat the financial crisis and recession which began in 2007, governments worldwide made it:
A. easier for firms and households to borrow money for investment and consumer goods. B. easier for other countries to borrow money for infrastructure projects. C. easier for firms to pay their taxes by providing a tax amnesty. D. easier for workers to purchase health insurance through their employers.
If an American firm opens a production facility in India, the total value of the production will be included in the
A) gross domestic product of the United States. B) national income of the United States. C) gross domestic product of India. D) consumption of fixed capital for India.