In the consumer choice problem, consumers are confronted with which of the following?
a. A set of different consumer goods and services to choose from
b. A set of prices for those goods and services.
c. A finite budget that constrains the quantity of goods and services that consumers can buy.
d. Preferences or utility associated with consuming different quantities of each of the different goods and services.
e. All of the above answers are correct.
e
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Average labor productivity is computed as the
A) ratio of industrial production to the employment rate. B) ratio of real output in manufacturing to the level of real GDP. C) ratio of real GDP to the unemployment rate. D) ratio of real GDP to the level of employment.
Suppose you solve a utility maximization problem, and the solution value of the Lagrange multiplier equals zero. What does this outcome imply about the problem solution?
A) You must have made an error while solving the problem. B) The budget constraint is not binding, and the constrained solution is equal to the solution to the unconstrained utility maximization problem. C) The optimal utility level for the consumer equals zero. D) The consumer's demand curve is upward sloping.
Which of the following is the fundamental resource that is the basis of labor?
a. capital b. natural resources c. time d. money e. entrepreneurial ability
Which of the following is the money multiplier?
A. The required reserve ratio. B. 1/(1 - the required reserve ratio). C. 1/(required reserve ratio). D. 1/(1 - MPC).