The optimal level of consumption is achieved when ________
A) consumption in one period is equal to consumption in the next period
B) utility in one period is equal to utility in the next period
C) all income and wealth has been spent
D) the slope of the indifference curve is equal to the slope of the budget line
D
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Refer to Scenario 1. What is the marginal product of the third hour of labor?
A) 60 B) 80 C) 100 D) 240
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (1,000 iPods, 500 tablets). B. (500 iPods, 500 tablets). C. (500 iPods, 250 tablets). D. (750 iPods, 150 tablets).
A decrease in the expected future price of a good will cause the current demand for the good to
a. decrease, which is a shift to the left of the demand curve. b. decrease, which is a shift to the right of the demand curve. c. increase, which is a shift to the left of the demand curve. d. increase, which is a shift to the right of the demand curve.
Suppose that you can hire a worker in one-hour increments. For hours of work up to 4, the total benefit of the worker (in dollars) is B(0) = 0, B(1) = 25, B(2) = 45, B(3) = 60, and B(4) = 70. What is the marginal benefit of the second hour of the worker's time?
A. $10 B. $20 C. $25 D. There is not enough information to answer the question.