Each of the following consumers exhibit behavior that violates one of the basic assumptions of consumer preferences. Identify the assumption that is violated for each individual
? Art says that he can watch 2 movies a week but couldn't be paid to watch another movie after that.
? Alex says that he prefers going to a movie over hiking. He also indicates that he prefers hiking to swimming. Alex then states that he would rather go swimming than go to a movie.
? Alicia says that she prefers hiking to watching a movie but can't determine her preferences for swimming.
Art violates the assumption that consumers desire more of a good to less. Alex's preferences violate transitivity. Alicia violates the completeness assumption.
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Suppose we observe the price level increasing and real GDP decreasing. An explanation for this is that
A) the dollar weakened and the effect on aggregate supply was less than the effect on aggregate demand. B) the dollar weakened and the effect on aggregate supply was greater than the effect on aggregate demand. C) the dollar strengthened and the effect on aggregate supply was less than the effect on aggregate demand. D) the dollar strengthened and the effect on aggregate supply was greater than the effect on aggregate demand.
In the short run, total costs equal
A) the sum of total fixed costs and total variable costs. B) the sum of total fixed costs and total explicit costs. C) the sum of total variable costs and total implicit costs. D) the sum of total fixed costs and total implicit costs.