Those who criticize individuals who choose to drive a relatively inefficient sport utility vehicle (SUV) might mistakenly
A) assume everyone faces the same relative prices.
B) assume everyone has the same preference set.
C) assume everyone has the same budget constraint.
D) All of the above.
D
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"Demand" is best defined as the relationship between:
A) the price of a good and the quantity consumers are willing and able to buy at each price level. B) the current price of a good and the quantity demanded at that price. C) the quantity supplied and the price people are willing to pay for a good. D) the amount of income someone has and the price he is willing to pay for a good.
The principle of comparative advantage explains how
a. one nation can take advantage of another one through international trade. b. two nations may engage in mutually beneficial trade, even though one of them is more productive than the other. c. one individual can take advantage of another through international trade. d. some people are good at producing everything, while others have no comparative advantages. e. some nations end up with large trade surpluses.
The situation in which the money a person receives does not increase even though prices rise.
a. inflation b. economic system c. fixed income d. deflation
Large minimum efficient scale of plant combined with limited market demand may lead to:
A. natural monopoly. B. patent monopoly. C. government franchise monopoly. D. shared monopoly.