A consumer chooses an optimal consumption point where the
a. marginal rate of substitution is maximized.
b. rate at which the consumer is willing to trade one good for another equals the price ratio.
c. price ratio is minimized.
d. All of the above are correct.
b
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The official poverty rate for the United States is currently set at ____ times the cost of providing a nutritionally adequate diet
a. two b. three c. five d. eight
Dividends are
A. The only motive for purchasing stock. B. Profits used for investment in new plants and equipment. C. An increase in the market value of an asset. D. The amount of corporate profit paid out for each share of stock.
Which of the following people would be included in the calculation of the civilian labor force?
a. Adriana, a 17-year-old high school graduate who is looking for her first job b. Khadija, a retiree who occasionally does volunteer work at the local library c. Simen, an accountant who is currently serving a prison sentence for embezzlement d. Lorn, a Marine Corps sergeant who works full time at 29 Palms, California
Don and Susanne have both been accused of insider trading. Don knows that if he confesses while Susanne keeps silent, he will receive a 1-month jail sentence. He also knows that if Susanne confesses and he keeps silent, he will receive a 12-month jail sentence. If neither of them confesses, there will be insufficient evidence to convict either of insider trading, but there is enough evidence to convict each of them individually of obstructing justice, which carries a 2-month sentence. If both of them confess, they will both serve a 3-month jail sentence. This situation is:
A. an application of the prisoner's dilemma. B. not realistic because those accused of insider trading are never encouraged to confess. C. not realistic because those accused of insider trading always keep silent. D. an example of cartel behavior.