Refer to Table 4.1. Mike's preferences are consistent with the Ranking Principle because:
A. the two goods are perfect complements.
B. there are no empty cells.
C. in each column, the choices at the top are ranked lower than the choices at the bottom.
D. in each column, the choices at the top are ranked higher than the choices at the bottom.
B. there are no empty cells.
You might also like to view...
In 1981 Fed policy created a severe recession because the Fed
A) publicly announced an inflation increase program. B) undertook an unexpected increase in the inflation rate. C) undertook an unexpected reduction in the inflation rate. D) publicly announced an inflation reduction program. E) increased aggregate supply to reduce the inflation rate.
A copper ore refiner pollutes the water upstream from a brewery. These are the only two parties involved. The transactions costs of reaching an agreement between the refinery and the brewery are low
The amount of water pollution will be at the efficient level A) only when the property right to the stream is assigned to the ore refinery. B) only when the property right to the stream is assigned to the brewery. C) when the property right to the stream is assigned to either the refinery or to the brewery. D) when no one has clear property rights.