Joe has $50, which he spends on movies and pizza. If the price of a pizza falls, Joe can
A) consume more of both goods.
B) consume more pizza only if he gives up some movies.
C) consume more movies only if he gives up some pizza.
D) consume more pizza only.
A
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Suppose a satellite radio signal can be received by any number of devices without the quality being diminished but that the devices are only activated when consumers pay a subscription. Which recognized characteristic of goods does not hold
A. morality. B. exclusivity. C. lucidity. D. rivalry.
An investor in a 30% marginal tax bracket, earning $10 in interest annually for a $100 U.S. Treasury bond:
A. earns a 10% after-tax return because interest on U.S. Treasury bonds is tax exempt at the federal level. B. earns a 1% return after-tax. C. would be indifferent between this bond and a municipal bond offering $7 annually per $100 of face value, assuming the same default risk and liquidity characteristics. D. earns a 3% return after-tax.
McDonald's introduced the "Big Mac" in 1968 and it turned out to be a hit, but the "Arch Deluxe" introduced in 1996 was not. The success or failure of a product in the market system is determined by:
A. Capitalism and entrepreneurship B. Specialization and exchange C. Consumer sovereignty and dollar votes D. Capital goods and roundabout production
Which factor of supply would the introduction of e-mail into places of businesses be?
A. Expectation of the future B. Price of input C. Technology D. Number of sellers