Since most people would be willing to pay far more for a cup of diamonds than for a cup of water,
A) diamonds provide more satisfaction to most people than water provides.
B) most people are irrational when it comes to prestige or status goods.
C) most people wrongly think they value diamonds more highly than water.
D) people's choices and preferences are often inconsistent.
E) very few people are ever in danger of dying of thirst.
E
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The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the unemployment rate is
A) 5.5 percent. B) 1,619 thousand. C) 3.5 percent. D) 3.7 percent. E) 5.8 percent.
A stable rule of law
A) invariably turns losses into profits. B) allows people to cooperate more effectively with one another. C) converts price searchers into price takers. D) renders the law of comparative advantage ineffective.
If the market price is $2.75 and a perfectly competitive firm is producing 1,100 units and the marginal cost to produce the 1,100th unit is $2.75, which of the following is true?
A) The firm is not maximizing profit. B) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is zero. C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive. D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative.
A supermarket sells you a pound of coffee on condition that you buy a gallon of milk. This is an example of
a. Bundling b. Package Tie in Sale c. Price Discounts d. Both a and b