If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $50,000
B. $12,500
C. $37,500
D. $40,000
C. $37,500
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Janae donates $50 to the local Humane Society. This means she can't buy that new pair of shoes, which according to her utility schedule, would have maximized her utility. This example illustrates the ________ aspect of behavioral economics
A) bounded self-interest B) bounded rationality C) bounded will-power D) empowerment effect
What does it mean to say economics is an empirical science, and how is this related to the question of deciding on the usefulness of a model?
What will be an ideal response?
Which of the following is true?
A. People tend to enjoy the process of buying a car more when the process involves difficult choices. B. Budgeting your income will often result in less total spending. C. High prices and rebates on cars simply irritate the consumer and make him feel treated like a fool. D. People prefer the toll ways where they throw in some change every dozen miles or so to a toll road that has one payment at the end of the trip.
A tariff is a tax on ____ goods that is designed to ____.
A. exported; protect domestic industries B. exported; hurt foreign industries C. imported; made domestic consumers pay more D. imported; protect domestic industries