A change in the price of one good leads to all of the following, except one. Which is the exception?
a. a change in the slope of the budget line
b. a new point of consumer utility maximization
c. a change in the trade-off between the two goods
d. a change in the marginal utility of each unit of the good
e. a change in the marginal utility per dollar spent on the good
D
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Refer to the scenario above. Which of the following statements is true?
A) The discounted value of $3,400 to be received after five years is $3,000. B) Tom's return from investing in his friend's project is higher than the amount received from the bank after five years. C) Tom's return from investing in the bank is higher than the amount received from his friend's project after five years. D) The returns on both investments are likely to be similar and Tom should be indifferent about investing in either options.
What is the "big tradeoff"?
What will be an ideal response?
Between 1810 and 1860, the value of slaves in the United States
a. nearly doubled. b. tripled. c. increased nearly fourfold. d. increased nearly tenfold.
Road traffic
a. should be provided free of charge b. is efficient on a toll road c. creates a positive externality d. is efficient in London, England e. creates a negative externality