Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?
A. 2 slice of pizza and 6 Diet Pepsis
B. 3 slices of pizza and 4 Diet Pepsis
C. 5 slices of pizza and no Diet Pepsi
D. 4 slices of pizza and 2 Diet Pepsis
Answer: B. 3 slices of pizza and 4 Diet Pepsis
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The figure above shows a nation's production possibilities frontier. In the figure, point B shows
A) an unattainable point. B) an attainable point. C) a point with a free lunch. D) a point with no trade off. E) a point at which there are unemployed resources.
Payments to households not in exchange for goods and services currently produced are:
a. transfer payments. b. government purchases. c. consumption expenditures. d. investment expenditures.
What fraction of the labor force is cyclically unemployed when structural unemployment is 2 percent, frictional unemployment is 2.5 percent, seasonal unemployment is 1 percent, and the overall unemployment rate is 8 percent?
a. 2.5 percent b. 13.5 percent c. 4.5 percent d. 5.5 percent e. 8.0 percent
Concentration ratios measure the percentage of industry sales for the top ________ firms.
Fill in the blank(s) with the appropriate word(s).