Some modern theories of consumer behavior have:
A) emphasized that consumption is basically an instantaneous act.
B) contended that in the MUx/Px = MUy/Py equation MU is understated for time-intensive goods.
C) introduced the opportunity cost of time as a component of product price.
D) argued that inflationary expectations negate the theory of consumer behavior.
Answer: C) introduced the opportunity cost of time as a component of product price.
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The short-run Phillips curve will not shift unless there is
A) an increase in inflation that is unanticipated. B) a decrease in inflation that is unanticipated. C) a change in inflation expectations. D) an increase in the unemployment rate.
If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that
A) there would be little or no incentive for individuals to take risky, hazardous, or unpleasant jobs. B) individuals would have an excess desire to invest in their own human capital. C) too many individuals would want to take risky jobs. D) productivity levels would probably become too high.