The limitation that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as
A) maximizing behavior. B) economizing behavior.
C) the budget constraint. D) the price constraint.
C
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If the price of one good increases, and as a result the demand for another related good falls, the goods are
A) substitutes. B) normal goods. C) complements. D) inferior goods.
The opportunity cost of building a park in your hometown would be the
a. money cost of constructing the park. b. highest valued bundle of other goods and services that must be forgone because of the park construction. c. necessary increase in tax revenues to finance the construction. d. amount of time spent in leisure activities in the park once it is constructed.
Microsoft has a special version of its Windows operating system that it sells at a low price in countries where cheap pirated software is widespread. The cost of producing another copy of this software is the same as the cost of producing another copy of the regular Windows product. Selling this "special edition" software at a low price in certain countries is very similar to what economists call:
A. welfare loss. B. a price taker. C. natural monopoly. D. price discrimination.
A defined contribution pension program is one in which
A. those in the plan, as well as their employer, contribute to an account according to a formula, and the investment of that account is under the control of the employee. B. the plan defines eligibility for retirement and benefits according to a set of rules and a formula. C. everyone gets the same amount, regardless of how much they work. D. benefits are untaxed.