The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. Bobby views snacks as a(n)
A) normal good.
B) inferior good.
C) Giffen good.
D) Not enough information.
D
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When people suddenly want to buy something, supply increases.
Answer the following statement true (T) or false (F)
A fruit retailer buys 50 pounds of apples from the wholesale market every day. The retailer has observed that 20% of the apples bought each time are not of good quality
Because it is not possible for the retailer to check each apple before buying, how much should he pay for each pound if he values good apples for $1.40 per pound while he has a value of zero for bad quality apples? A) $1.12 per pound B) $1.20 per pound C) $1.40 per pound D) $2 per pound
What is the present value of $200 one year from now when the interest rate is 6 percent?
A) $125.00 B) $188.68 C) $212.00 D) $320.00
Throughout the 1980s, accounting departments in U.S. universities were unable to fill many available faculty positions. This fact suggests that the salaries offered by these departments
a. suffered from the cost disease of the service sector. b. were below the market price for qualified accountants. c. created externalities. d. failed to reflect productivity growth in teaching.