Corey has a blue sweater and a denim jacket. On some days he chooses to wear the sweater but on others he chooses to wear the jacket. Economists would most likely conclude that:
A. Corey’s preferences have changed.
B. Corey’s preferences have not changed, but other factors may have changed such as the temperature outside.
C. Corey is irrational if he wears different clothing on different days.
D. Corey is indifferent between wearing a jacket or a sweater.
B. Corey’s preferences have not changed, but other factors may have changed such as the temperature outside.
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A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, how much is he being paid in economic rent?
A) $2.0 million B) $100,000 C) $1.9 million D) $2.1 million
Policies which promote good governance of a society are:
A. based on favoritism. B. not important to pursue in developing countries. C. central to economic growth. D. uncommon in nations with high growth rates.
The income effect of a wage increase:
a. results in an increase in the quantity of labor supplied. b. results in a decrease in the quantity of labor supplied. c. has no impact on the quantity of labor supplied d. results in a decrease in the quantity of leisure enjoyed.
A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A. increased from $1000 to $2000. B. decreased from $1000 to $500. C. decreased from $2000 to $1000. D. increased from $500 to $2000.