In a perfectly competitive market, long-run equilibrium requires which of the following?
a. Allocative efficiency and productive efficiency
b. Allocative efficiency and zero profits
c. Productive efficiency and zero profits
d. Productive efficiency and elasticity
a. Allocative efficiency and productive efficiency
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Stewie enjoys watching DVDs and listening to his iPod. Suppose his utility function is given by U(D, I) = 3D + 4(D × I), where D is the number of hours he spends watching DVDs and I is the number of hours he spends listening to his iPod. Which of the following combinations will provide Stewie with the greatest amount of satisfaction?
A. 4 hours of watching DVDs and 8 hours of listening to his iPod B. 6 hours of watching DVDs and 6 hours of listening to his iPod C. 2 hours of watching DVDs and 10 hours of listening to his iPod D. 8 hours of watching DVDs and 6 hours of listening to his iPod
Analogies between public and private debt are usually misleading
a. True b. False Indicate whether the statement is true or false
The utility of a specific product:
A. is determined by consumer income. B. varies from person to person using the product. C. is constant from person to person using the product. D. is determined by the price of the product.
If a college degree is used to signal high ability, but the cost of a college degree is relatively high,
A) a separating equilibrium is achieved. B) a pooling equilibrium is achieved. C) even low-ability workers will attend college. D) the share of high-ability workers must be 1.