Complete this sentence: in a market system income is generally earned
A) independently of acts of exchange and production.
B) arbitrarily and randomly.
C) unproductively.
D) in the process of its creation.
D
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A corporation's board of directors
A) are the sole owners of the corporation. B) hire the managers of the corporation. C) are personally liable for the debts of the corporation. D) control the day-to-day activities of the corporation.
The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harold receives from pears. To maximize his utility, what should Harold do?
A) He should buy fewer pears and more oranges. B) He should buy fewer oranges and more pears. C) He should reduce his consumption of both oranges and pears so that he can buy a greater variety of goods. D) He should acquire more income so that he can afford to buy more oranges and pears.
A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. In equilibrium,
A. MPL will be less than 20. B. MPL will be 5 times MPK. C. MPK will be more than 20. D. a and b E. none of the above
In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change
A) income and hold everything else constant. B) tastes and preferences and hold everything else constant. C) the price of the product and hold everything else constant. D) the price of a close substitute and hold everything else constant.