In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined once students graduated and found jobs. One conclusion the survey team might draw from this result is that:
A. ramen noodles are an inferior good.
B. there is excess demand for ramen noodles.
C. college graduates have a high reservation price for ramen noodles.
D. the equilibrium price for ramen noodles is too high.
Answer: A
You might also like to view...
The primary component of photochemical smog is
a. lead c. sulfur dioxide b. tropospheric ozone d. carbon dioxide
Al’s Donuts produces about 600 dozen doughnuts daily. If flour prices increase 20 percent,
A. only marginal cost will shift up. B. only marginal cost and average total cost will shift up. C. marginal cost, average variable cost, and average total cost will shift up. D. marginal cost, average total cost, average variable cost, and average fixed cost will shift up.
An O. Henry short story tells about a young married couple, quite poor, facing Christmas without the means to buy each other gifts. So without her knowing, he sells his watch to buy a comb for her lovely hair and at the same time without him knowing, she cuts her lovely hair and sells it to buy a fob for his watch. To an economist, this touching story tells us
a. that without complete and open information, utility cannot be maximized b. total utility is not always greater than marginal utility c. the law of diminishing marginal utility does not apply in all cases d. the marginal utility of the comb for her was greater than the marginal utility of his watch and for him, the marginal utility of the fob was less than the marginal utility ofthe comb e. the marginal utility of the comb for him was greater than the marginal utility of his watch and for her, the marginal utility of her hair was less than the marginal utility ofthe fob
Moore's law refers to which of the following?
A) The steady state rate of growth of output per capita will equal the rate of growth of technological progress. B) The number of transistors in a chip would double approximately every 18-24 months. C) The steady state rate of growth of output per effective worker will be zero. D) The saving rate that maximizes steady state consumption is .5 (s = 0.5). E) none of the above