Giffen goods violate the law of demand
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that a technological decline makes labor less productive. What is likely to happen to wages and to potential output?
A) Wages decrease and potential output increases. B) Wages increase and potential output decreases. C) Wages increase and potential output increases. D) Wages decrease and potential output decreases.
Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, and 15, respectively. The marginal utility of the second unit consumed is:
a. 0. b. 4. c. 12. d. 20.
Based on the graph showing equilibrium output and price for a monopolist, monopolists should boost production when ______.
a. MR + MC=0
b. MR < MC
c. MR = MC
d. MR > MC
Because of increasing opportunity costs, the production possibility curve:
A. Is bowed out from (or concave to) the origin B. Can be either downward- or upward-sloping C. At first rises, then falls eventually D. Is a straight downward-sloping line