Answer the following statement(s) true (T) or false (F)
1. You can increase your total satisfaction by buying goods with lower marginal utility at a higher price.
2. Sometimes when you buy additional units of one good and its marginal utility decreases, the marginal utility of the goods you did not buy increases.
3. If marginal utility is held constant, consumer equilibrium can be maintained even if the price of certain goods fall.
4. Behavioral economics draws on human psychology.
5. Behavioral economists assume consumers are always rational and informed.
1. False
2. True
3. False
4. True
5. False
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Which of the following is likely to cause the supply curve for steel window frames to shift to the right?
A) A decrease in the cost of production of steel due to a new subsidy B) A fall in the number of steel window frame producers due to factory lockouts C) A rise in the market price of steel window frames due to an increase in demand D) An increase in the wages of labor working in steel firms due to demands by trade unions
The reduction in transaction costs provided by financial intermediaries benefit:
A. small borrowers but not small savers. B. society in the net, but small savers bear much of the cost. C. small borrowers and small savers. D. large borrowers but not small savers.
For an individual, opportunity costs
a. decrease as consumption increases. b. include only the monetary costs of goods and services. c. reflect resource scarcity. d. reflect the fact that wants are unlimited. e. reflect the fundamental assumption that "more is better."
What is the shape of average cost curve? Provide the reason for that particular shape