Select one or more: Oa Marco can reach point J by borrowing against his future income O b. Borrowers are always worse off than lenders O. Investing all his endowment and simultaneously borrowing is Marco's best option O d. At point J Marco's marginal rate of substitution is 1.1 O e. At point H, Marco has an mrs of 0.8 O f. The diagram shows that borrowing against returns on future investment is always rational, if the bank will lend you the money. O g. If Marco cannot borrow and cannot invest a rise in the interest rate makes him better off. If he can invest and borrow a rise in the interest makes him worse off O h. If Marco can invest and borrow he will choose to borrow $136.36, the present value of $150

Select one or more: Oa Marco can reach point J by borrowing against his future income O b. Borrowers are always worse off than lenders O. Investing all his endowment and simultaneously borrowing is Marco's best option O d. At point J Marco's marginal rate of substitution is 1.1 O e. At point H, Marco has an mrs of 0.8 O f. The diagram shows that borrowing against returns on future investment is always rational, if the bank will lend you the money. O g. If Marco cannot borrow and cannot invest a rise in the interest rate makes him better off. If he can invest and borrow a rise in the interest makes him worse off O h. If Marco can invest and borrow he will choose to borrow $136.36, the present value of $150

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How do answers A and B differ?
Compare and contrast the choice based and preference based approaches to the consumer choice behavior
Felicity is studying economics and political science. She can read 30 pages of political science per hour but only 5 pages of economics per hour. This week she has a 50-page assignment in economics and a 150- page assignment in political science. Because of sorority rush, she cannot devote more than 10 hours to studying these subjects this week. She realizes she cannot complete all of her assignments but is determined to complete at least 30 pages of her economics reading. Draw a graph with pages of economics on the horizontal axis and pages of political science on the vertical axis. On this graph, show the possibilities that are consistent with the constraints that Felicity has imposed on herself, i.e. show her choice set. (She is NOT allowed to read ahead in either subject.) Label key points on your graph with their numerical values.
Consumer value can be determined by how consumer utility compares between different items. Comment
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[item no.24] (Multiple Choice) Is lying generally illegal in the Philippines? Yes, because the law does not allow individuals to practice lyingNo, but there are instances when lying can land you in jail