Bobby makes a New Year's resolution to lose weight. On January 3rd, he decides to go to Ben amp; Jerry's for ice cream instead of going to the gym. Using the concept of revealed preference, economists would most likely conclude that Bobby:
A. has changed his preferences.
B. is not a rational individual.
C. has no choice over the actions he takes.
D. actually gains more utility from ice cream than working out.
Answer: D
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In 2008, the Treasury and Federal Reserve took several actions in response to the deepening financial crisis. One action was the Treasury's move to have the federal government take control of
A) JPMorgan Chase. B) Fannie Mae and Freddie Mac. C) the Federal Deposit Insurance Corporation (FDIC). D) Lehman Brothers.
As a firm continues to produce additional output, which of the following will continue to decline as output expands?
A) average total costs B) marginal costs C) average fixed costs D) opportunity costs
Refer to the tables. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods will be:
Answer the question on the basis of the following production possibilities tables for two
countries, North Cantina and South Cantina:
A. 3 units of consumer goods.
B. 4 units of consumer goods.
C. 5 units of consumer goods.
D. 6 units of consumer goods.
To decrease output the government could adopt policies that
A. increase aggregate supply and decrease aggregate demand. B. increase aggregate supply and aggregate demand. C. decrease aggregate supply and aggregate demand. D. decrease aggregate supply and increase aggregate demand.