A change in price that is accompanied by a change in income sufficient to leave a consumer's well-being unchanged is called:
A. an uncompensated price change.
B. a compensated price change.
C. an income adjusted price change.
D. the income effect.
B. a compensated price change.
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Which of the following costs can be positive when output is zero?
A) average variable cost B) total variable cost C) marginal cost D) total fixed cost E) None of the above because when output is zero there are no costs.
How does the textbook distinguish between coercion and persuasion? Coercion induces cooperation by
A) making only a majority better off, persuasion by making everyone better off. B) making nearly everyone better off, persuasion by making only a few people better off. C) threatening to reduce people's options, persuasion by promising to increase their options. D) using force, persuasion by using rational argument.