If not all goods are essential, a consumer will end up optimizing at a corner solution.

Answer the following statement true (T) or false (F)


False

Rationale:

If not all goods are essential, a consumer might end up optimizing at a corner solution --- but she might also optimize at an interior solution, as illustrated in this graph.

Economics

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Sales taxes are

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Economics

Explain the role of economic freedom in economic development

What will be an ideal response?

Economics

Industry A has market shares of 50, 30, and 20 . Industry B has market shares of 45, 40, and 15 . where si is the market shares of the i-th firm in the industry

a. The Herfindahl index for A is 100. b. The Herfindahl index for A is 3,800. c. The Herfindahl index for B is 3,600 d. The Herfindahl index for A is greater than for B. e. The Herfindahl index is for B is 4,000.

Economics

The owner of an oil well in Texas sells 500 barrels of oil to a refinery in Canada for $1,000. This transaction

A. decreases Gross Domestic Product (GDP) because oil reserves have fallen by 500 barrels. B. has no effect on Gross Domestic Product (GDP) because this is the sale of an intermediate product. C. has no effect on Gross Domestic Product (GDP) because the refinery is in Canada. D. will increase Gross Domestic Product (GDP) by $1,000.

Economics