Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following best describes Max's preferences?
A) d > b > e
B) d = b = e
C) a = b > c
D) a = b > e
D
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Households in the United States more completely smooth out expenditures on
A) durable goods and nondurable goods than on services. B) durable goods than on nondurable goods and services. C) nondurable goods and services than on durable goods. D) services and durable goods; nondurable goods.
Which of the following is a problem with using real GDP as a measure of economic well-being? a. It does not account for inflation
b. It does not account for production within the household. c. It does not account for production by foreign firms producing inside the U.S. d. all of the above
Cartels are difficult to maintain because
a. antitrust laws are difficult to enforce. b. cartel agreements are conducive to monopoly outcomes. c. there is always tension between cooperation and self-interest in a cartel. d. firms pay little attention to the decision made by other firms.
A dedicated professor loves being in the classroom and would teach for $70,000 per year, but he is actually paid $80,000 per year. This individual
A) receives economic rent of $150,000. B) has an opportunity cost of $80,000. C) has an opportunity cost of $70,000. D) receives economic rent of $10,000.