You and your friend go out shopping for television sets for your respective apartments. You find the one you want to buy and pay extra money to have it delivered during the weekend. Your friend is unwilling to pay extra and will wait for the television to be delivered as per the store's usual practice. Which of the following conclusions can be drawn from this information?
a. You have a higher price elasticity of demand for the TV than your friend.
b. Your opportunity cost of time is higher and than your friend's.
c. Your friend's opportunity cost of time is higher than your's.
d. Both of you have the same price elasticity of demand for the TV.
B
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Of the following views on the effects of immigration on the receiving nation's economic growth, which have NOT been suggested by economists Michael Kremer and Julian Simon?
A) Technological progress is driven by population growth. B) Immigration increases a nation's labor pool and encourages ingenuity. C) Immigration costs the local population jobs and greatly lowers their incomes. D) Immigrants raise the standard of living of a nation's native population.
Under the conditions set for the taking of property by eminent domain, the government could take private property
A) to build a highway. B) to allow a private developer to construct residential housing. C) so a professional sports franchise can build a new stadium. D) all of the above
A monopolist can perfectly price discriminate:
A. when it can distinguish consumers with a high versus low willingness to pay. B. when it offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay. C. if it knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit. D. whenever it chooses to as a result of its market power.
Assume that the budget constraint in the figure below is: P E E + P A A = I, where I is total income and P E is the price of education and P A is the price of all other goods. If U(E,A) = A + E, P E = 2, P A = 1, and I = 10. If the price of education drops to 1, how much of the two goods are consumed now?
