If you observe me choosing bundle A over bundle B on Monday, bundle B over bundle C on Tuesday and bundle C over bundle A on Wednesday, it must be that my tastes violate transitivity.
Answer the following statement true (T) or false (F)
False
Rationale: Not necessarily --- it might be that I am indifferent between the three bundles. (It might also be that my tastes include a taste for variety over the course of the week.)
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A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker is free to choose the number of transactions he can make, what is his maximum profit?
a. $8 b. $10 c. $18 d. $28
The quantity theory of money argues that, in the long run (real GDP equals potential GDP), the percentage change in money will create an equal percentage change in
What will be an ideal response?
Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good. B) An increase in the price of a good causes a rightward shift of the supply curve for that good. C) An increase in the price of a good causes an increase in the quantity supplied of that good. D) all of the above
When the profits of a corporation are taxed and the dividends paid to stockholders are also taxed
A) the government is engaging in double taxation. B) the government is engaging in capital gains taxation. C) the government is engaging in regressive taxation. D) the government is engaging in progressive taxation.