After watching a movie, Alan chooses not to watch a second and goes for a walk instead. Economists could explain his choices using the concept of:
A. budget constraints.
B. substitution effect.
C. income effect.
D. diminishing marginal utility.
Answer: D
You might also like to view...
Interdependence of firms is most common in
A) oligopolistic industries. B) monopolistically competitive industries. C) monopolistically competitive and oligopolistic industries. D) monopolistic industries.
When the Treasury bond market becomes more liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________
A) right; right B) right; left C) left; right D) left; left
The average product of agents in an insurance company is currently 5 policies written per month. If the company employs 428 agents, it's writing
a. 428 policies per month. b. 2,140 policies per month. c. 2,508 policies per month. d. 3,509 policies per month.
Refer to the above table. The marginal utility of the 8th movie for Rosie is
A. 20 units of utility. B. 30 units of utility. C. 420 units of utility. D. 5 units of utility.