Some modern theories of consumer behavior have:
A) emphasized that consumption is basically an instantaneous act.
B) contended that in the MUx/Px = MUy/Py equation MU is understated for time-intensive goods.
C) introduced the opportunity cost of time as a component of product price.
D) argued that inflationary expectations negate the theory of consumer behavior.
Answer: C) introduced the opportunity cost of time as a component of product price.
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A social system in which rights are clearly defined and participants are free to exchange as they choose will tend to allocate resources to
A) their most efficient uses. B) their most highly valued uses. C) uses on which the highest monetary value is placed. D) uses which maximize social welfare. E) uses which produce the greatest good for the greatest member.
Based on the information in the table above, what is the relationship between x and y?
A) direct B) inverse C) positive D) No relationship exists between x and y.
Generally, when there is asymmetric information
A) a lender will only lend to the government. B) a lender will only lend to well-known borrowers. C) practical solutions are devised to allow lending to take place. D) a lender will cease all lending activities.
Land rent results from
a. differences in the productivity of land b. equality in the marginal physical product of different acres of land c. landlords demanding a rent higher than the price of land use d. differences in land distance from the marketplace e. the difference between differential and location rents