Rational utility maximizing consumers tend to:
A. buy the same bundle of goods regardless of the prices charged.
B. choose the same bundle of goods regardless of their income.
C. change their consumption choices when either prices or income changes.
D. change their consumption choices only when both prices and income changes simultaneously.
C. change their consumption choices when either prices or income changes.
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Suppose Carmen buys ramen noodles. To determine whether ramen noodles are a normal or inferior good for her, we must observe how Carmen
A) responds to a change in the price of a substitute for ramen noodles. B) responds to a change in the price of a complement for ramen noodles. C) responds to a change in the price of ramen noodles itself. D) responds to a change in her income. E) responds to all of the above.
A 2009 article in The Economist noted that some studies have provided evidence indicating that multipliers are
a. smaller in closed economies than in open economies. b. larger in closed economies than in open economies. c. smaller in capitalist economies than in socialist economies. d. larger in capitalist economies than in socialist economies.
A government-imposed restriction on the quantity of a good that can be imported is
A. a health restriction. B. a protective tariff. C. an embargo. D. a quota.
Which of the following trends had been happening in the banking industry even before the Financial Crisis of 2007-2008?
A. An expansion in the number of banks and thrifts B. A consolidation of services offered by financial institutions C. A decrease in the integration of global financial markets D. An increase in the amount of savings held by banks relative to other financial institutions