Consider a consumer choosing between spending her money on food, F, or clothing, C. Assume that a unit of food and a unit of clothing have the same price, and that the consumer can afford a total of 20 units of either food or clothing. This is an example of:
A. a constrained optimization problem.
B. a sunk cost.
C. a sinking cost.
D. the No Marginal Improvement Principle.
A. a constrained optimization problem.
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If the supply of solar panels increases,
A) the price and quantity of solar panels increases. B) the demand for solar panels increases. C) the quantity demanded of solar panels decreases. D) the price of solar panels decreases and the quantity increases. E) None of the above.
If people buy less of a good at every price when their incomes fall, then that good is a normal good
Indicate whether the statement is true or false
If the level of investment spending increases by $100 and the MPC in the economy is 0.8, then the cumulative spending increase after three rounds of spending is
a. $280. b. $260. c. $244. d. $220.
Part of the reason why barely used cars sell for much less than new cars is that
A. buyers and sellers have symmetric information about cars and both have less information about used cars than about new cars. B. buyers and sellers have symmetric information about cars and both have more information about used cars than about new cars. C. buyers have more information about used cars than sellers do. D. sellers have more information about used cars than buyers do.