The individual's budget constraint is _____
a. the amount of money she has in the bank
b. determined by dividing the individuals income by the price of the goods she wants to buy
c. the maximum amount one good she can consume given her consumption of other goods
d. a line depicting all the possible budgets an individual could have at various occupations
c
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When applying for a loan, a borrower tends to know more about her ability to pay it back than does the bank. This is an example of
a. perfect information b. moral hazard c. a low marginal benefit of information for the bank d. asymmetric information e. optimal search
The demand curve for the product of a monopolistic competitor is
A) downward sloping. B) horizontal. C) vertical. D) unitary elastic.
In the above diagram curves 1, 2, and 3 represent the:
A. total, average, and marginal product curves respectively. B. total, marginal, and average product curves respectively. C. marginal, average, and total product curves respectively. D. average, marginal, and total product curves respectively.
The desired level of the capital stock will increase if the
A. user cost of capital increases. B. effective tax rate increases. C. price of capital increases. D. expected future marginal product of capital increases.