The intercept of a budget line measures the
a. amount of a good that a consumer will purchase
b. maximum amount of a good that a consumer could purchase, given his consumption of some other good
c. maximum amount of a good that could be consumed at given prices and income
d. minimum amount of a good that could be consumed at given prices and income
e. minimum consumption of a good consistent with utility maximization
C
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While cyclical majorities can lead to unstable outcomes, they generally do not because of _____
a. rational ignorance b. double-peaked preferences c. political institutions d. majority rule
A corporate merger occurs when: a. two formerly separate firms combine to become one single firm
b. one firm purchases another firm. c. two formerly separate firms decide to charge the same price for a product. d. one firm follows the exact actions of another firm.