The market value of a good or service is the:
A. price at which producers are willing to sell an output.
B. government's valuation using the CPI.
C. price at which it is bought and sold.
D. None of these statements is true.
Answer: C
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Keynesians disagree with the new classical model because
a. people are often irrational. b. wages are often negotiated through contracts, not auctions. c. people do not form expectations. d. wages are set to clear auction markets in both the short run and long run. e. all of the above
Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less of each good. C. Quinn would consume more bowling and less meals out. D. Quinn would consume less bowling and more meals out.
Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 ? 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the number of women's underwear items that should be packaged together.
A. 7 B. 1 C. 4 D. 3
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The slope of isocost CD is
A. greater than the slope of isocost AB. B. less than the slope of isocost AB. C. equal to the slope of isocost AB. D. indeterminate from this information, as the prices of capital and labor are not given.