If we observe that Jamie's budget constraint has moved outward, then we know for certain that
a. her income must have increased.
b. she will be indifferent between goods X and Y.
c. the price of one or both of the goods must have decreased.
d. she can reach a higher indifference curve.
d
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A firm will generally believe that if it increases its spending on R&D its competitors will not follow, but if it decreases its spending they will follow
a. True b. False Indicate whether the statement is true or false
Suppose that a new invention increases the marginal productivity of labor, shifting labor demand to the right. Such an invention would be an example of
a. labor-saving technology. b. labor-augmenting technology. c. revenue technology. d. supply-shifting technology.
Tickets for the Super Bowl are an example of supply that is
A) perfectly elastic. B) unit elastic. C) slightly inelastic. D) perfectly inelastic.
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A. the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers. B. in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. C. in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. D. the monopsonist will take advantage of labor and offer them lower wages.