Veblen goods:
A. are inferior goods.
B. are an excellent example of the individual nature of utility.
C. are goods which consumers buy to show how wealthy they are.
D. are goods that people buy more of when their income decreases.
Answer: C
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A worker has a marginal product of 15 units a day, each of which can be sold for $10. Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer
What will be an ideal response?
Figure 2-10
Consider the production possibilities frontier for food and clothing in . A movement from point J to point K could be caused by
a.
the development of new and better technology
b.
increasing unemployment
c.
the movement of society into a recession
d.
the law of increasing opportunity costs
e.
eliminating productive inefficiency
Suppose there are 5 makers of tablet computers with market shares of 80%, 5%, 5%, 5%, and 5% respectively. The HHI is
A. 10,000. B. 0. C. 20. D. 6,500.
A rise in interest rates will cause
A. Investment spending to remain constant. B. A decline in investment spending. C. A rise in investment spending. D. Investment spending to be eliminated from the economy.