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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
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
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.
- Fall '07