Suppose Joe's MRS for cookies with crackers is 6 crackers per cookie. Also assume that Mary's MRS for cookies with crackers is 3 crackers per cookie. Assuming that these rates of substitution don't depend on the amounts consumed, which of the following trades would make both Joe and Mary better off?
A. Joe gives Mary 5 crackers in exchange for a cookie.
B. Joe gives Mary 2 crackers in exchange for a cookie.
C. Joe gives Mary 6 crackers in exchange for a cookie.
D. There is not enough information to answer the question.
A. Joe gives Mary 5 crackers in exchange for a cookie.
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In economic models, variables taken as given and not explained by the model are called ________ variables
A) exogenous B) endogenous. C) short-run. D) long-run. E) nominal.
Collective consumption goods are _____
a. goods that can be consumed by additional consumers without reducing the amount available to existing consumers b. goods that can be produced for everyone at zero marginal cost c. goods that are produced and consumed by an entire group, such as a commune that raises its own vegetables d. goods that once produced, can be consumed by additional consumers without reducing the amount available to existing consumers