Refer to Table 4.1. If Mike starts with 3 CDs and 2 economics books, would he be willing to trade one CD for an economics book?
A. Yes, because the bundle with 2 CDs and 3 economics books is ranked higher than the bundle with 3 CDs and 2 economics books
B. No, because the bundle with 2 CDs and 3 economics books is ranked higher than the bundle with 3 CDs and 2 economics books
C. Yes, because the bundle with 3 CDs and 2 economics books is ranked higher than the bundle with 2 CDs and 3 economics books
D. No, because the bundle with 3 CDs and 2 economics books is ranked higher than the bundle with 2 CDs and 3 economics books
D. No, because the bundle with 3 CDs and 2 economics books is ranked higher than the bundle with 2 CDs and 3 economics books
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A trade deficit occurs when:
A. government revenue exceeds government spending. B. exports exceed imports. C. exports are less than imports. D. government spending exceeds government revenue.
As the differences in opportunity costs between the U.S. and its trading partners increase, the potential gains from specialization and trade ________.
A. decrease B. stay the same C. become unpredictable D. increase
Refer to the data. Assuming that the firm is motivated by self-interest and that the 20 units that can be produced with each technique can be sold for $2 per unit, the firm will:
Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodity:
A. realize an economic profit of $10.
B. realize an economic profit of $4.
C. not earn any economic profit.
D. shut down rather than incur a loss by producing.
? Assume that Figure 4-4 shows demand for orange juice. A decrease in the price of apple juice will change demand from
A. D1to D2. B. D2to D1. C. D2to D3. D. D1to D3.