Question

In: Economics

QUESTION 19 Let X and Y be consumption goods and let K be a capital good,...

QUESTION 19

Let X and Y be consumption goods and let K be a capital good, and assume that these are the only three goods produced in the economy. True or false: To produce today more X requires that less Y or K today be produced, but to produce more K today does not require that less X or less Y be produced.

A.
True

B.
False

C.
DO NOT CHOOSE THIS ANSWER.

D.
DO NOT CHOOSE THIS ANSWER.

1 points

QUESTION 20

Which of the following circumstances is most likely to decrease the elasticity of demand for Cory’s Checker Taxicab Service in New York City?

A.

New Yorkers' incomes fall.

B.

The number of Uber and Lyft drivers in Manhattan increases.

C.

A sudden and unexpected heavy rainfall starts in New York City.

D.

New Yorkers come to get greater enjoyment from driving their own cars and motorcycles to their destinations within New York City.

QUESTION 17

Which of the following is best explained by the fact that people make decisions at the margin?

	A.	If Molly has a comparative advantage over Jacob at producing bananas, then Jacob has a comparative advantage over Molly at producing fish.
	B.	A mother who would, if she had to, sacrifice her life to save that of her child will not donate a kidney to a stranger.
	C.	Each individual has preferences that are transitive.
	D.	Rachel, who is seated in a park on a beautiful day in Fairfax, refuses to buy a bottle of fresh air from Ricky, who - having realized that everyone in constant need of air - has decided to try to earn his fortune by selling bottles of this necessary commodity.

Expert Solution

As is clear from the question X and Y are the Consumption goods. The goods which are directly purchased by the consumer to satisfy their wants. K is the capital good ,which is produced to strengthen the capital base of the country.

Q19). The correct option is

(A). True

Q20). The correct option is (a).

New Yorkers income fall.

When the income of the consumer decreases it generally tends to fall the elasticity of demand as well.

Q17). The correct option is (d).

Rachel, who is seated in a park on a beautiful day in Fairfax, refuses to buy a bottle of fresh air from Ricky, who - having realized that everyone in constant need of air - has decided to try to earn his fortune by selling bottles of this necessary commodity.

Making decisions "at the margin" means that peoplea. make those decisions that do not impose a marginal cost.

Hope you got the answer.

Kindly comment for further explanation.

Thanks ?

Rahul Sunny answered 6 months ago

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