Lectures in microeconomics can be delivered either by an instructor (labor) or a movie (capital) or any combination of both. Yet, it gets harder and harder to substitute more movies for an instructor the more movies are already used
Which graph in the above figure best represents the isoquants for lectures in microeconomics when units of capital per day is on the vertical axis and units of labor per day is on the horizontal axis? A) Graph A
B) Graph B
C) Graph C
D) Graph D
B
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A negative externality exists when
A. marginal social costs are less than marginal private costs. B. marginal social costs are greater than marginal private costs. C. marginal social benefits are less than marginal private benefits. D. marginal social benefits are greater than marginal private benefits. E. b and c
Suppose that George goes to his favorite ice cream store and buys three single -dip cones, the first for three dollars, the second for two dollars, and the third for one dollar, but enjoys no consumer surplus from the experience. We know that George must
a. have paid the same price for each cone b. have been cheated by the ice cream store-owner c. not like ice cream very much d. have paid prices for the cones that correspond to points on his demand curve e. not have maximized total utility that day
Figure 4-23
In Figure 4-23, which of the following movements would be caused by a change in income?
A. A to C B. C to A C. B to D D. B to A
Let C represent consumption expenditure, S saving, I gross private domestic investment, G government expenditure on goods and services, and X - M net exports of goods and services. Then GDP equals
A) C + S + G + X - M. B) C + S + G - X - M. C) C + I + G + X - M. D) C + I + G - X - M.