A consumer spends all of her income on goods x and y. At her optimum,
a. marginal rate of substitution between good x and good y exceeds the ratio of the price of good x to the price of good y.
b. her expenditure on good x is equal to her expenditure on good y.
c. the slope of her budget constraint is equal to the slope of the highest indifference curve that she can reach while remaining within her budget.
d. her valuation of the two goods exceeds the market’s valuation of the two goods.
c. the slope of her budget constraint is equal to the slope of the highest indifference curve that she can reach while remaining within her budget.
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Suppose all firms in a perfectly competitive industry have production processes characterized by the production function 
. Suppose the cost of labor is 20 and the cost of capital is 10.
a. Suppose that the industry is in long run equilibrium and that firms are using 1 unit of capital. What is the short run cost function of each firm?
b. Suppose there are 5,000 firms in long run equilibrium. What is the short run market supply function?
c. Suppose market demand is 
What is the equilibrium price?
d. Firms in this industry face a recurring fixed cost FC. What must FC be in order for this industry to indeed be in long run equilibrium with its 100 firms?
What will be an ideal response?
Most income in the United States is earned by business owners as profit
Indicate whether the statement is true or false
A major contributor to the slowdown in U.S. labor productivity during the 1973-1995 period was
a. capital spending. b. technological change. c. labor force growth. d. investment spending.
The Lorenz curve shows the distribution of
A. wealth. B. income. C. poverty. D. jobs.