According to the more-is-better principle:
A. a consumer will always select the bundle that is ranked highest among all alternative bundles.
B. a consumer will prefer a bundle that has the largest amount of the good they prefer most.
C. consumers always try to achieve the highest possible level of well-being.
D. when comparing consumption bundles, a consumer prefers a bundle that has more of every good.
D. when comparing consumption bundles, a consumer prefers a bundle that has more of every good.
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Use the following graphs for a perfectly competitive market in the short run to answer the next question.
The graphs suggest that in the long run, assuming no changes in the given information, the market
A. supply curve will shift to the right. B. demand curve will shift to the right. C. supply curve will shift to the left. D. demand curve will shift to the left.
In an inflationary expenditure gap, the equilibrium level of real GDP is
A. equal to full-employment real GDP. B. greater than full-employment real GDP. C. greater than planned investment. D. less than full-employment real GDP.
Which of the following items is not a factor of production?
A. An oil rig in the Gulf of Mexico B. A ski jump in Utah C. A bank loan to a farmer D. An orange grove in Florida
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is the Nash equilibrium price for Pepsi?
A. $0.016 B. $0.45 C. $0.53 D. $0.38