Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the:
a. consumer should consume more coffee and fewer bagels.
b. price of coffee is too high relative to bagels.
c. consumer should consume less coffee and more bagels.
d. consumer is in equilibrium.
d
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Why do some workers lose their job when the minimum wage is increased?
A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero. B) The increase in the minimum wage decreases the quantity of labor demanded. C) The demand for labor is perfectly inelastic. D) The supply of labor decreases. E) The demand for labor is perfectly elastic.
Criticisms of the Brander-Spencer model include all EXCEPT which of the following?
A) the problem of insufficient information B) the problem of likely foreign retaliation C) the problem of harm to interests of consumers D) the problem of adverse effects of trade policy politics E) the problem of simultaneously causing harm to other industries
If consumption spending is larger than disposable income,
a. saving is positive. b. dissaving occurs. c. saving is exactly zero. d. a depression results. e. this cannot occur.
A small increase in productivity growth can have a huge impact on a country's standard of living
a. True b. False Indicate whether the statement is true or false