As the price of good X increases, the budget line
a. makes a parallel shift outward.
b. makes a parallel shift inward.
c. pivots inward.
d. pivots outward.
c. pivots inward.
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In the circular flow model, consumption goods are bought and sold in the
A) goods markets. B) financial market. C) factor markets. D) government market. E) monetary flows.
A landfill site produces an obnoxious odor. Homes downwind of the site rent for $1000 per month while homes upwind of the site rent for $1500 per month
If the odor is the only detectable difference between two neighborhoods, the difference in the rent is the ________ of the odor. A) social cost B) external cost C) private cost D) marginal cost-benefit E) private benefit
In order for the price system to have satisfied the exacting requirements for efficiency,
A. MU must equal MC for each and every commodity. B. the average cost of producing each good must be equal to its MU. C. the maximum possible of total economic profit must be produced. D. every consumer’s MU will be equal to marginal physical product.
The table above shows the weekly relationship between output and number of workers for a factory with a fixed size of plant
a. Calculate the marginal product of labor. b. At what point does diminishing returns set in? c. Calculate the average product of labor. d. Find the three stages of production.