ECON 2010 FINAL

18 wilma a rational economic agent consumes only two

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Unformatted text preview: 18. Wilma, a rational economic agent, consumes only two goods: torrid romance novels and beer. She had just achieved the utility-maximizing solution in her consumption of the two goods, then the price of torrid novels rises. Adjusting to this event, she will consume: A) not sure B) less novels and more beer. C) more novels and less beer. D) less beer and less novels 19. You come home to find that your dog, Killer, is missing. Where he once sat is a ransom note: "$500.00 or Killer dies." You have $500.00 in savings earmarked for a new bike. You pay the ransom with that $500. What is the opportunity cost of your decision? A) the bike and a dead Killer B) the bike C) the bike and a live Killer D) a dead Killer read REALLY carefully! In this situation when you pay the $500 you are not only giving up the bike but Version 1 Page 4 20. Consider the statement, "Pandas are valuable and should be saved from extinction, even though people do not care one way or the other about pandas." This notion of "value" is consistent with h...
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.

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