The number of hours that a worker is willing to work is determined by the trade-off between the increasing
A. Total utility of leisure and the decreasing total utility of income.
B. Value of leisure time and the decreasing marginal utility of income.
C. Marginal utility of both income and leisure.
D. Total utility of income and the decreasing marginal utility of leisure.
Answer: B
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Who can determine the true cost of water?
A) Nobody B) Anybody who puts their mind to it C) Only the most competent hydrologist D) A good accountant
Michelle Martelle, CEO of Michelle Enterprises, has five projects in hand and is considering which, if any, to undertake. Their expected returns are: project A = 12 percent, project B = 7 percent, project C = 10 percent, project D = 9 percent, and project E = 8 percent. If the interest rate is 8.5 percent, which, if any, investment projects will she accept?
a. Only project A. b. Projects A and C. c. Projects A, C and D. d. Projects A, C, D and E. e. Projects A, B, C, D and E.
An increase in the U.S. price level will
a. increase the slope of the expenditure schedule. b. decrease the slope of the expenditure schedule. c. shift the expenditure schedule upward. d. shift the expenditure schedule downward.
Cartel agreements are difficult to sustain because:
A. it's usually easy to discover if one of the members has cheated. B. cartel members do not face the economic incentives inherent in a prisoner's dilemma. C. it's a dominant strategy for each cartel member to cheat on the cartel agreement. D. the collective payoff to all the cartel members is lower when they all abide by the cartel agreement.