Answer the following questions true (T) or false (F)
1. Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good.
2. Each price-quantity combination on a consumer's demand curve shows the utility-maximizing quantity at the given price.
3. A Giffen good could be either a normal good or an inferior good.
1. TRUE
2. TRUE
3. FALSE
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Only a small proportion of corporate stock owners have incomes under $100,000
Indicate whether the statement is true or false
The CPI equals 1.00 in year one and 1.05 in year two. If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two?
A. $15.00 B. $15.75 C. $14.29 D. $16.05
A free good is different from a scarce good because it is:
A) not tradable. B) not produced. C) not scarce. D) found only in nature.
Recall the Application about the study done about the perceptions and behavior of the unemployed in Great Britain to answer the following question(s).According to this Application, becoming unemployed caused ________ in perceived well-being for men if those in their peer group were also unemployed.
A. a larger decrease B. a smaller decrease C. no change D. an large increase