In the above figure, when the price of Good B increases, the result can be shown by
A) the movement from D1 to D2 in Graph A.
B) the movement from D2 to D1 in Graph A.
C) the movement along D0 from P1 to P2.
D) the movement along D0 from P2 to P1.
C
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Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate is considering whether to play the second game. If Kate only cares about the expected value of the outcome and does not care about risk, she should:
A. not play since she never wins anything. B. play if the cost of playing the game is greater than the expected value of the payoff. C. compare the cost of playing the game with the value of her time. D. play if the cost of playing the game is less than the expected value of the payoff.
Consumer equilibrium occurs at:
a. any point of intersection between the budget line and an indifference curve. b. a point of tangency between the budget line and an indifference curve. c. the point where the slope of the indifference curve equals the ratio of the quantities. d. a point where the budget line cuts the curve from below.
During or just after economic booms inflationary periods have typically occurred.
Select whether the statement is true or false. A. True B. False
The part of aggregate planned expenditure that does not vary with real GDP
a) equals equilibrium expenditure b) is autonomous expenditure c) is induced expenditure d) equals zero