When Trina can afford bundles A and B but not C, she purchases bundle A. When Trina can afford bundles A and C, but not B, she purchases bundle C
We can conclude her preference ordering of the three bundles is (in order from most preferred to least) A) C, A, B.
B) B, A, C.
C) A, C, B.
D) A, B, C.
A
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Suppose there are two factories on a river, and both need clean water for their production processes. The upstream factory takes in clean water and dumps dirty water back into the river
The downstream firm must clean up the water it gets from the river before using it. In this situation A) the private costs of the downstream factory are more than the private costs of the upstream factory, but for both factories private costs and social costs are the same. B) the social costs are greater than the private costs for the upstream firm, while the social costs are less than the private costs for the downstream firm. C) the upstream factory's private costs are less than its social costs, and its external costs are borne by the downstream factory. D) the internal costs of the upstream factory are externalized by the downstream factory, which then passes them on to its customers.
Recent changes in methods used to compute the CPI have made the
a. upward bias in the CPI inflation rate more severe than it used to be. b. upward bias in the CPI inflation rate less severe than it used to be. c. downward bias in the CPI inflation rate more severe than it used to be. d. downward bias in the CPI inflation rate less severe than it used to be.
A change in the money supply will change investment when
A) the money supply is a function of the price level. B) investment is interest-sensitive. C) investment depends only on the level of GDP. D) investment is interest-insensitive. E) the supply for money is a function of the interest rate.
The Law of One Price holds true because
a. All farmers agree on a single price to sell their product b. Government price supports level the playing field c. Profit seeking individuals try to buy low and sell high d. Food is generally price inelastic