Jones is hungry, but is willing to postpone lunch as long as he can have a much larger meal at dinner. The compensation of the larger meal at dinner time suggests that Jones
A) is a glutton.
B) acts irrationally because it is best to have three meals a day.
C) has a positive rate of time preference with regard to today's meals.
D) does not consider lunch to be a scarce good.
C
Economics
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Which of the following functions are performed by depository institutions?
I. They make long-term loans using short-term deposits, thereby creating liquidity. II. They efficiently gather funds from a large base of depositors. III. They concentrate risk. A) I only B) II only C) III only D) I and II
Economics
According to marginal utility theory, a rise in income will
A) increase a consumer's total utility. B) increase consumption of all goods. C) increase the marginal utility of all goods. D) None of the above answers is correct.
Economics