Economists assume that individuals make informed decisions and act in their own self-interest.
Answer the following statement true (T) or false (F)
True
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If households spend $0.75 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.33. B) 4. C) 5. D) 7.5.
If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output,
A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.
Refer to Table 3.1. If preferences satisfy all four of the basic assumptions:
A) A is on the same indifference curve as B. B) B is on the same indifference curve as C. C) A is preferred to C. D) B is preferred to A. E) Both A and B answer choices are correct.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables, its marginal cost is equal to $200, and AVC is rising. If the market price of tables is equal to $150, Alex's Furniture Mart should:
A. decrease its level of table production. B. increase its level of table production. C. continue producing 250 tables. D. raise the price of its tables.