Why is the benefit of something measured by what you are willing to give up?
What will be an ideal response?
The benefit of a good or service, say a slice of pizza, is the pleasure it brings the consumer. But it is impossible to measure someone's pleasure. In order to measure the benefit of the slice of pizza, we need something that we can measure. Thus, to measure the benefit of the slice of pizza, we ask the consumer what he or she is willing to give up to get the slice of pizza. So, if the consumer was willing to give up, say, three hot dogs to get the slice of pizza, we can determine that the benefit of the slice of pizza to the consumer is three hot dogs.
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In the figure above, the lowest 20 percent of all households receive ________ percent of all income, the next lowest 20 percent receive ________ percent of all income and the richest 20 percent receive ________ percent of all income
A) 20; 20; 20 B) 20; 40; 100 C) 10; 20; 40 D) 10; 10; 40
What is a monopsony and why is a monopsony able to pay a lower wage rate than a firm in a competitive labor market?
What will be an ideal response?
When gold production was low in the 1870s and 1880s, the money supply grew ________ causing ________
A) rapidly; inflation B) rapidly; disinflation C) slowly; deflation D) slowly; disinflation
Foreign direct investment is defined as
A. opening a deposit account in a foreign bank. B. the purchase of more than 10 percent of the shares of ownership in a company in another nation. C. purchasing government bonds. D. funds allocated into a foreign stock market that represent an ownership share of firms less than 5 percent.