Chat with AIExam 3: The Theory of Consumer Choice
Do you think that the behavior of a student,who is focused on achieving superior grades and aims to top the class,will be described as goal-oriented behavior by economists?
(33) 
VerifiedThe assumption of goal-oriented behavior is described as the behavior of market participants interested in fulfilling their own personal goals.It is often taken to indicate that individuals are self-interested.This assumption,however,does not imply that market participants care solely about their own pocketbooks.A student focused on achieving superior grades exhibits goal oriented behavior as the superior grades would leave him/her satisfied but would not affect the goals of the other students in the class.
What is the opportunity cost of going to college? What is the opportunity cost of attending class?
(29) VerifiedThe answer should include the direct,explicit costs of going to college (tuition,books,etc. )and the implicit costs of foregone wages,for example.One might also include the costs of studying hard to earn high grades.The opportunity cost of attending class does not include tuition since that is a sunk cost from the perspective of a student already enrolled in classes.Thus,the explicit cost of attending class is zero and the implicit cost is the value of the next best alternative use of your time,perhaps the value of sleeping that hour,or the wage that you could earn by working that hour.
Theory A is considered to be better than Theory B if:
(36) VerifiedC
If a production possibility frontier (PPF)is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:
(40) Suppose the consumer price index was 100 in 2000 and 300 in 2010.This implies that the average price level:
(36) Rubber,a major cash crop in Country X,reported a significant decline in production during a certain year.The government set up two committees,one of which was assigned the task of investigating the cause of the drop in production while the other was asked to prescribe a recovery policy.Suggest a positive and a normative statement made by each of these two groups within this context.
(39) Jane can either bake 10 mango tarts or clean 2 cars in one hour.If Jane decides to do both these jobs within the same hour,what would be her opportunity cost of cleaning one additional car? (Assume that Jane faces constant opportunity cost. )
(43) Which of the following is an example of a normative statement?
(40) Compare the behavior of a person who has a hobby of stamp collection with that of an athlete who undergoes regular training.Who do you think is more rational and why?
(32) Which of the following steps in evaluating a public policy is not in the realm of positive analysis?
(41) The assumption of rationality implies that market participants:
(34) Explain why ticket prices sold by scalpers near the venue where an event will take place increase the closer you get to the venue.
(30) 
-In the production possibility frontier in Figure 1-1,which point(s)is (are)efficient?
-In the production possibility frontier in Figure 1-1,which point(s)is (are)efficient? (30) In judging the value of a theory,the most important criteria is:
(35) Differences in the _____ of resources in the production of various commodities explain the per-unit opportunity cost associated with a concave production possibility frontier.
(36) Which of the following is an assumption usually made about markets and market participants by economists?
(29) Relative to a linear production possibilities curve,one that is more concave to the origin indicates a(n):
(41) 
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