Which of the following statements is false?
A) There is an indifference curve associated with any combination of goods selected by a consumer.
B) A consumer is indifferent among all consumption bundles along a given budget line.
C) Consumption bundles that lie on higher indifference curves yield higher utility.
D) All consumption bundles along a given indifference curve are equally desirable.
B
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How does the labor-leisure trade-off determine the supply of labor?
What will be an ideal response?
Joan Jillson owns a coffee shop. Assume that the marginal product of the labor Joan employs (MPL) equals 500 cups per week and the marginal product of her shop's capital (MPK) equals 1,000
Assume also that the wage (w) Joan pays her workers equals $250 per week and the rental price (r) of her capital - her coffee machines - equals $500 per week. Which of the following correctly analyzes whether Joan is minimizing her costs? A) No, Joan is not minimizing her costs because MPL × w is less than MPK × r. B) No, Joan is not minimizing her costs because MPK is greater than MPL and r is greater than w. C) Yes, Joan is minimizing her costs because she is a price-taker in the markets for labor and capital. D) Yes, Joan is minimizing her costs because MPK/r equals MPL/w.
If one player defects in a repeated game, and his opponent is following a tit-for-tat strategy, we can predict the opponent will:
A. defect in the next round. B. renegotiate. C. cooperate and try to get his opponent to follow. D. collude.
What function is money serving when you deposit it in a savings account?
A. a store of value B. a unit of account C. a medium of exchange D. a checkable deposit