Which of the following examples correctly identifies preference reversals?
A) Alice starts using public transport when the price of gasoline increases.
B) Sarah's consumption of coffee increases substantially when the price of tea increases.
C) Terry decides on Monday that he would join music classes from Thursday, but refuses to do so on Thursday.
D) The extra utility that Tim derives from consuming additional units of ice cream decreases as he consumes more ice cream.
C
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Mandy saved her allowance to buy a 12 pack of cream soda. When Mandy's brother saw the soda, he took four. Sodas were allocated between Mandy and her brother through
A) force. B) majority rule. C) first-come, first-served. D) sharing equally. E) personal characteristics.
Refer to Scenario 7.1. For 100 cookies, the average total cost is
A) falling. B) rising. C) neither rising nor falling. D) less than average fixed cost.
A progressive tax is one in which the fraction of income paid in taxes rises as a person's income increases
a. True b. False Indicate whether the statement is true or false
Which of the following is consistent with moving from a surplus to equilibrium in the market for foreign-currency exchange?
a. the exchange rate appreciates making domestic goods relatively more expensive. b. the exchange rate appreciates making domestic goods relatively less expensive. c. the exchange rate depreciates making domestic goods relatively more expensive. d. the exchange rate depreciates making domestic goods relatively less expensive.