According to revealed preference a consumer that chooses to smoke cigarettes:
A. derives more utility from smoking than the goods they could have purchased with that same money.
B. derives more happiness from smoking than the goods they could have purchased with that same money.
C. is minimizing their utility given the options available to them.
D. is behaving irrationally.
A. derives more utility from smoking than the goods they could have purchased with that same money.
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In a market economy, what determines whether an entrepreneur will continue in business or terminate the production of a new product
What will be an ideal response?
The equilibrium level of real GDP is $1,000, the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.60. The target can be reached if government spending is:
A. increased by $60 billion. B. increased by $100 billion. C. increased by $250 billion. D. held constant.
In which way are tariffs different from quotas?
A) They reduce the volume of imported products. B) They raise the price of the imported products to consumers. C) They increase the domestic quantity supplied of the product. D) They raise government revenue.
Refer to the information provided in Table 2.2 below to answer the following question(s).Table 2.2?MollyPeteAvatar Design68Tattoo Design32Refer to Table 2.2. Which of the following statements is true?
A. Molly has a comparative advantage in both avatar design and tattoo design. B. Pete has a comparative advantage in avatar design and Molly has a comparative advantage in tattoo design. C. Molly has a comparative advantage in avatar design and Pete has a comparative advantage in tattoo design. D. Pete has a comparative advantage in both avatar design and tattoo design.