Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If the price of burger increases, which of the following bundles are in Max's opportunity set?
A) b, d, e
B) d, e
C) a, b, c, d, e
D) None of the labeled points are in Max's opportunity set.
D
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In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for:
a. stage II b. stages I and II c. when Ep = 1 d. stage III e. none of the above
Market participants are likely to save a portion of current income if they
A. Believe that banks might fail. B. Place a higher value on current consumption than on future consumption. C. Place a higher value on future consumption than on current consumption. D. Believe that money will lose much of its value in the future. In deciding to save rather than spend, people effectively reallocate their spending over time. That is, people save now in order to spend more in the future.
Refer to the given data. With a $1-per-unit tariff, price and total quantity sold will be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. $3 and 7 units.
B. $5 and 2 units.
C. $1 and 16 units.
D. $2 and 11 units.
Use the information in the above table. If Income was evenly distributed, each person would receive
A) $9,000. B) $2,500. C) $1,800. D) $1,000.