Which of the following statements is necessarily true regarding a point along a budget line?
a. It implies an individual has spent her entire income
b. It implies an individual is as happy as possible given her income.
c. It implies an individual no longer faces tradeoffs between both goods.
d. It implies an individual would be better off consuming a different bundle of goods.
a
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The basic idea behind a negative income tax is to
a. help local government agencies deliver more services to the poor. b. increase the in-kind income of the poor. c. help the poor get job skills. d. help the poor without destroying incentives to work.
Which of the following statements is true?
a. Productivity is calculated as hours worked divided by output produced. b. Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. c. Both A and B are correct. d. None of the above are correct.
Which of the following is not correct?
a. An organized withdrawal of labor from a firm by a union is called a strike. b. The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. c. Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. d. Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.
A firm can maximize profit (net benefit) by choosing to produce that level of output at which
A. the additional revenue from the last unit sold equals the additional cost of that unit. B. the additional revenue from the last unit sold is just a little more than the additional cost of that unit. C. the difference between the additional revenue from the last unit sold and the additional cost of that unit is maximized. D. total revenue equals total cost.