Symmetry of net substitution effects is one of the principal conclusions of the theory of utility maximization. Which two mathematical theorems are used to prove this symmetry?
a. Taylor's Theorem and Fundamental Theorem of Calculus
b. Cauchy's Theorem and DeMoivre's Theorem
c. Lagrangian Theorem and Fundamental Theorem of Calculus
d. Envelope Theorem and Young's Theorem
d
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Which of the following is most likely to be sold in an oligopoly market?
A) pizza B) cell phone service C) electricity D) cotton
If the opportunity cost of a unit of current consumption is exactly 1 unit of future consumption then you must sacrifice $10 of current consumption to finance
A. $1 of future consumption. B. $10 of future consumption. C. $11 of future consumption. D. $9 of future consumption.
An excise tax is a tax that is levied on
A) the value of a piece of property. B) the purchase of a given good or service. C) the value of an estate. D) that part of a person's income coming from interest payments.
Refer to the data provided in Table 17.1 below to answer the following question(s). The table shows the relationship between income and utility for Jane.Table 17.1 IncomeTotal Utility $00$20,00025$40,00045$60,00060$80,00070Refer to Table 17.1. Suppose Jane has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. How much would such an insurance policy be worth to Jane?
A. $0 B. $20,000 or less C. more than $20,000 but less than $40,000 D. $40,000 or more