Greg spends his entire budget on two goods: he plays video games at the mall arcade and he buys pizza. He discovers that his MU/P of video games is lower than his MU/P of pizza. From this, we know that he would be
a. happier eating less pizza and playing fewer video games
b. happier eating less pizza and playing more video games
c. happier eating more pizza and playing fewer video games
d. indifferent to which selection he makes
e. less happy if he made any change because he has obviously bought the quantities that maximize his total utility
C
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Which of the following goods is likely to have the highest price elasticity of demand?
A) Salt B) Gasoline C) Life-saving drugs D) Ketchup
For the study of economic growth, it is most helpful to examine movements in ________; for the study of business cycles, it is most helpful to examine movements in ________
A) trend GNP; trend GNP B) trend GNP; deviations from trend in GNP C) deviations from trend in GNP; trend GNP D) deviations from trend in GNP; deviations from trend in GNP