Ellie is spending her entire income on goods X and Y. Her marginal utility from the last unit of X is 100 and the marginal utility from the last unit of Y that she consumes is 50. Ellie's utility is only maximized if
A. the prices of X and Y are the same.
B. the price of good Y is twice that of good X.
C. the price of good X is twice that of good Y.
D. We cannot determine whether Ellie is maximizing her utility.
Answer: C
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If Norwegian workers are more productive than Albanian workers, then trade between Norway and Albania
A) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want. B) cannot take place until Albanian workers become more productive. C) can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want. D) cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.
A discovery that increases wheat yields per acre helps farmers by increasing both supply and total revenues
a. True b. False Indicate whether the statement is true or false
A firm's demand for labor is
A. its MRP schedule. B. determined by the going wage rate. C. shaped mainly by the supply of labor.
Collective bargaining in the United States typically involves negotiations between
A. union and nonunion employees regarding work rules. B. an individual and her boss over the appropriate salary level. C. the government and management over the minimum wage law. D. the management of a company and the leaders of the union over the wages and fringe benefits to be offered.