Refer to the above graph. The shift of the budget line from CD to AB is consistent with:
A. an increase in the price of Good 1 and no change in the price of Good 2.
B. a decrease in money income.
C. an increase in money income.
D. a decrease in the price of Good 2 and no change in the price of Good 1.
Answer: B
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Suppose Dean and Kennedy are playing a single stage game. Each simultaneously chooses either 1 or 2. If they both select 1, Dean pays Kennedy $2. If they both pick 2, Dean pays Kennedy $4. If they select different numbers, Kennedy pays Dean $3. Draw a table showing the two players' strategies and payoffs. Are any strategies dominant? Weakly dominant? Dominated? Solve for a mixed strategy equilibrium.
The payoff matrix should appear as follows:
What will be an ideal response?
The price-consumption curve: a. connects the various combinations of two goods as a consumer's income changes
b. connects the various combinations of two goods as the relative price of one good changes. c. shows the quantity of a good consumed as a function on income. d. All of the above are correct statements.
In 1973, ____ out of 7 Americans worked in manufacturing, but by 1996, just ____ in 7 did.
Fill in the blank(s) with the appropriate word(s).
Which of the following is an example of Maslow's third level of needs?
a. sex b. money c. love d. home