Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 1.4, Problem 4ST
To determine
Explain whether the instructor or student is right.
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Chapter 1 Solutions
Macroeconomics
Ch. 1.2 - Prob. 1STCh. 1.2 - Prob. 2STCh. 1.2 - Prob. 3STCh. 1.3 - Prob. 1STCh. 1.3 - Prob. 2STCh. 1.3 - Prob. 3STCh. 1.4 - Prob. 1STCh. 1.4 - Prob. 2STCh. 1.4 - Prob. 3STCh. 1.4 - Prob. 4ST
Ch. 1 - Prob. 1QPCh. 1 - Prob. 2QPCh. 1 - Prob. 3QPCh. 1 - Prob. 4QPCh. 1 - Prob. 5QPCh. 1 - Prob. 6QPCh. 1 - Prob. 7QPCh. 1 - Prob. 8QPCh. 1 - Prob. 9QPCh. 1 - Prob. 10QPCh. 1 - Prob. 11QPCh. 1 - Prob. 12QPCh. 1 - Prob. 13QPCh. 1 - Prob. 14QPCh. 1 - Prob. 15QPCh. 1 - Prob. 16QPCh. 1 - Prob. 17QPCh. 1 - Prob. 18QPCh. 1 - Prob. 19QPCh. 1 - Prob. 20QPCh. 1 - Prob. 21QPCh. 1 - Prob. 22QPCh. 1 - Prob. 23QPCh. 1 - Prob. 24QPCh. 1 - Prob. 25QPCh. 1 - Prob. 26QPCh. 1 - Prob. 1WNGCh. 1 - Prob. 2WNGCh. 1 - Prob. 3WNG
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- 5. Your economics instructor says, "If the price of going to the movies goes down, people will go to the movies more often". A student in class says, "Not if the quality of the movies goes down'. Who is right, the economics instructor or the student? Discuss your answerarrow_forwardThere are two consumers and two goods (A and B) in a competitive economy. At the competitive equilibrium, each consumer’s MRSAB of good A for good B is 7, which means each would be willing to trade 7 units of good B for one unit of good A. The price of good A is $15. What is the price of good B? Please round your answer to two decimal places, if necessary.arrow_forwardJoab and his friends used to play a game where they put on a dog's electric fence collar and tried to stand over the electric fence line because, after careful consideration of the costs and benefits, they decided that the benefits of watching their friends get shocked outweighed the costs of being shocked themselves. According to the economic way of thinking, by playing this game, Joab and his friends were O not responding to the incentives they faced. making an irrational choice. making a rational choice. not fully considering the costs and benefits of their decision since this is obviously a mistake for anybody to do.arrow_forward
- How does marginality work in economics?arrow_forwardYou and another shop are deciding whether to keep prices high or keep prices low. Here is the situation, with the amount of utility you will get depending on what you do and what the other shop does. What action would give you the highest utility? a. You would get the most utility if you kept your prices LOW, no matter what the other shop does b. None of these choices are true c. All of these choices are true d. You would get the most utility if you kept your prices HIGH, no matter what the other shop does e. You would get the most utility if you did whatever the other shop didarrow_forwardMaria is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Maria must take time away from work, where she earns $12 per hour. This is in addition to paying a $5 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate? a. The cost of something is what you give up to get it. b. Trade can make everyone better off. c. Markets are usually a good way to organize economic activity. d. People usually exploit opportunities to make themselves better off.arrow_forward
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