As John's income has increased, he has purchased fewer hamburgers. Hamburgers are
A) a normal good for John.
B) an inferior good for John.
C) not following the law of demand.
D) leading to a rightward shift in John's demand curve for hamburgers.
B
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An expansion of the production possibilities frontier is
A) called economic growth. B) proof that scarcity is not a binding constraint. C) a free gift of nature. D) something that has occurred only rarely in history.
If a customer values good A at $15, and it costs the firm $10 to produce, the firm can increase its profits if
a. Redesign the product such that it delivers $16 in customer value b. Redesign the production process so that the costs fall to $9 c. One or both of the above d. None of the above
If the cost of producing a good rises for sellers, then how will this affect the market equilibrium for that good? a. Price will rise and quantity will fall. b. Price will fall and quantity will rise. c. Price and quantity will both rise
d. Price and quantity will both fall.
Refer to Figure 7.3. The marginal rate of technical substitution for labor with capital at 120 workers is represented by the slope:
A. of line ac.
B. of line ed.
C. of line ab times negative one.
D. of line ed times negative one.