Figure 5-16
In Figure 5-16, Adam is
a.
better off at C than at D and able to afford either C or D.
b.
better off at D than at C but only able to afford C.
c.
equally well off at C and D and able to afford either C or D.
d.
equally well off at C and D but only able to afford C.
d
You might also like to view...
The expanded circular flow model is a complex set of money, resource, and product flows in and out of households, firms, government, and foreign economies. If you account for each of the in and out flows, you can conclude that
a. investment must be zero b. savings can be greater than investment c. savings can be smaller than investment d. savings must equal investment e. savings must equal zero
A state lottery commission offers a new millionaire game - a one in a million chance to win one million dollars. If the price of a lottery ticket is $1.50, who would buy any?
a. Only risk-neutral individuals. b. Only risk-preferring individuals. c. Both risk-neutral and risk-preferring individuals. d. Anyone, risk preferences would not matter.