In consumer equilibrium, Harold consumes pizza, sodas, and other goods. Pizza and soda are complements for Harold. The price of a pizza rises while his income remains the same. Harold then consumes
A) more pizza and less soda.
B) more pizza and more soda.
C) less pizza and less soda.
D) less pizza and more soda.
C
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Marginal revenue product falls as more labor is hired because
A) the price of the product must fall for a perfectly competitive firm to sell more. B) the marginal product of labor is negative as additional units of labor are hired. C) the wage rate rises as more workers work more hours. D) the marginal product of labor falls as a result of the law of diminishing returns.
Which of the following is not an example of microfinance?
A. A loan to a bakery for a machine to mix dough. B. A loan to a small farmer for fertilizer. C. A loan to an executive for a retirement home. D. A loan to a restaurant owner for an indoor grill.
When production does not proceed on the basis of comparative advantage, resources are expended on their most efficient uses
a. True b. False Indicate whether the statement is true or false
In the textual example, Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates. This success created an incentive for other banks to:
A. go out of business. B. seek government action to ban group responsibility lending. C. avoid catering to a high risk group. D. offer similar loans to the poor.