Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A) their budget constraint.
B) their income.
C) relative prices.
D) their marginal rate of substitution.
A
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The rich receive _____ all property income.
A. nearly B. about one-half of C. about one-quarter of D. a very small percentage of
Refer to the accompanying table. ________ has the comparative advantage in making pies and ________ the comparative advantage in making cakes. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. Martha; Martha B. Julia; Martha C. Martha; Julia D. Julia; Julia
Suppose duopolists face the market inverse demand curve P = 100 - Q, Q = q1 + q2, and both firms have a constant marginal cost of 10. If firm 1 is a Stackelberg leader and firm 2's best response function is q2 = (100 - q1)/2, at the Nash-Stackelberg equilibrium the prices the two firms charge are
A) P1 = 40, P2 = 40. B) P1 = 30, P2 = 30. C) P1 = 30, P2 = 40. D) P1 = 40, P2 = 30.
If good J and good Z are complements and the price of good J increases, the demand curve for good Z will
A. shift to the left. B. become horizontal. C. not change. D. shift to the right.