Suppose that the price of peanut butter is $3 per pound and the price of almond butter is $5 per pound. If the price of peanut butter rises to $3.60 and the price of almond butter rises to $5.50, then the absolute price of peanut butter has _______________ and the relative price of peanut butter has _______________
A) risen; fallen
B) fallen; risen
C) risen; risen
D) fallen; fallen
A
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Individuals economize and respond predictably to
a. positive incentives, but not negative incentives. b. negative incentives, but not positive incentives. c. both positive and negative incentives. d. neither positive or negative incentives.
The market demand curve for a product produced in a perfectly competitive industry is normally:
A. upward sloping. B. a vertical line. C. a horizontal line. D. downward sloping.
Which of the following individuals would be likely to face the lowest opportunity cost of a college education?
A. The 40-year-old owner of a successful construction company who wants to finish college as an example to his children B. A high school basketball star who is offered a multimillion-dollar contract with the NBA, as well as a full scholarship at the university of his choice C. A well-paid staff member at a college who can take classes tuition free D. A high school graduate who has few skills, does not qualify for a full scholarship, and would be able to work as a server at her family's restaurant if she did not go to college
Consumers maximize total utility within their budget constraint by
A) buying the cheapest goods they can find. B) buying whatever they like the best. C) buying the goods with the largest marginal utility per dollar spent. D) spending the same dollar amount for each good.