What is a household's choice set or opportunity set?
What will be an ideal response?
A choice set is the set of options that is defined and limited by a budget constraint.
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Rent controls are most often designed to protect the investment made by apartment building owners.
Answer the following statement true (T) or false (F)
In the new Keynesian models,
a. imperfect competition comes is the result of optimizing behavior by individuals. b. perfect competition is assumed with respect to the product market c. a natural monopoly is presumed for the product market. d. both a and c. d. None of the above
Assume a monopolistically competitive firm is earning an economic profit. The marginal revenue from selling an additional unit is $30 and the marginal cost of producing that additional unit is $23 . The firm should
a. change neither its price nor its output level b. reduce its price and increase its output level c. increase its price and reduce its output level d. reduce both its price and its output level e. increase both its price and its output level
Diamonds are considered:
A. a renewable resource. B. a nonrenewable resource. C. physical capital. D. technology.