The opportunity cost of one more slice of pizza in terms of sodas is the
A) total number of sodas that we have divided by the total number of pizza slices that we have.
B) price of a pizza slice minus the price of a soda.
C) number of pizza slices we have to give up in order to get one extra soda.
D) total number of pizza slices that we have divided by the total number of sodas that we have.
E) number of sodas we have to give up in order to get one extra pizza slice.
E
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Expected wealth is a weighted average in which the weights are
A) average utilities. B) marginal utilities. C) total utilities. D) probabilities.
The typical economic life cycle illustrates how people tend to
a. borrow more when they are younger and save more when they are middle-aged. b. earn their peak incomes immediately prior to the typical retirement age of 65. c. adjust their consumption based on changes in their transitory income. d. All of the above are correct.