Multiple Choice
Hillary has an initial endowment of $500 and is interested in two things: how many visits she can make to the doctor and how much money will be left over to spend on other things.When a trip to the doctor costs $60, Hillary sees the doctor 3 times.After health care reform, a visit to the doctor will cost $10 but her taxes will rise by $170.
A) Hillary will be made better off by health care reform.
B) Hillary violates the Weak Axiom of Revealed Preference.
C) We cannot tell how health care reform will affect Hillary.
D) Hillary will be made worse off by health care reform.
E) Hillary violates the Strong Axiom of Revealed Preference.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Twenty years ago, Dmitri consumed bread which
Q14: The strong axiom of revealed preference says
Q15: Howard Send is deciding whether to keep
Q16: Let A stand for the bundle (7,
Q17: Carlos has at one time or another
Q19: On the planet Homogenia, every consumer who
Q20: When prices are ($2, $10), Emil chooses
Q21: The Laspeyres price index differs from the
Q22: Twenty years ago, Amanda consumed cans of
Q23: Hillary has an initial endowment of $500