In the labor market, the income and substitution effects work in the same direction.
Answer the following statement true (T) or false (F)
False
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The granite boulders in Rocky Mountain National Park are a favored place among talented climbers who specialize in the art of bouldering, or climbing harder (but shorter) routes without tying into a rope
Climbers have taken to (illegally) stashing foam crash pads underneath the boulders but marmots and other rodents chew up the pads and the litter is spread by the wind. To limit overuse of this park, suppose a limited number of permits are sold each year to climbers who can sell them at any time to other climbers. This method of achieving efficient use of a common resource is most like what government policy? A) Production quota B) Property right C) Individual transferable quota D) Marginal social benefit right
In the figure above, the factor responsible for the decline in the interest rate is
A) a decline the price level. B) a decline in income. C) an increase in the money supply. D) a decline in the expected inflation rate.
Good Boy Super Treats produces healthy treats for dogs. At its current advertising level, Good Boy Super Treats marginal cost of advertising is $1 million and their marginal benefit is $1.2 million. Which of the following is true?
A) The firm should reduce the amount of advertising to increase its net profit. B) The firm is currently maximizing its net profit. C) If the firm increases the amount of advertising, its net profits will decrease. D) The firm should increase the amount of advertising to increase its net profit.
Amy is thinking about going to the movies tonight. A movie ticket costs $15, and she'll have to cancel a $20 dog-sitting job that she would have been willing to do for free. The opportunity to Amy cost of going to the movies is:
A. $5. B. $20. C. $35. D. $15.