Johnny spends his day doing a variety of activities; he spends the morning exercising and doing yard work, reads in the afternoon, and hosts a dinner party in the evening. Economists would say his choice to do a variety of activities instead of spending all of his time on one activity illustrates the concept of:
A. tastes and preferences
B. budget constraints
C. diminishing marginal utility
D. income effect
C. diminishing marginal utility
You might also like to view...
When a nation exports a good, its ________ surplus increases, and when it imports a good, its ________ surplus increases
A) total; total B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
A decrease in the interest rate results in
A. a greater opportunity cost of investment and so planned investment spending increases. B. a smaller opportunity cost of investment and so planned investment spending decreases. C. a smaller opportunity cost of investment and so planned investment spending increases. D. a greater opportunity cost of investment and so planned investment spending decreases.
Refer to the graph. Which one of the following would cause a move from point d to point e along short-run average total cost curve ATC 2?
A. Diminishing marginal returns.
B. An increase in the wage rate.
C. A decrease in the wage rate.
D. Increasing marginal returns.
Consider Sam and Linda both drive a relatively inefficient sport utility vehicle (SUV). Sam has a lease that doesn't expire for three years whereas Linda owns her sport utility vehicle free and clear
If the price of gasoline was to increase by fifty percent, which of these statements is most likely true? A) Linda will have a less elastic response than Sam. B) Sam will have a less elastic response than Linda. C) Sam and Linda will have identically elastic responses. D) Sam will have a more elastic response than Linda.