The opportunity cost of leisure will fall if
A. nonlabor income increases.
B. the wage rate increases.
C. the wage rate decreases.
D. nonlabor income decreases.
Answer: C
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Marginal cost is the cost
A) that your activity imposes on someone else. B) that arises from an increase in an activity. C) of an activity that exceeds its benefit. D) that arises from the secondary effects of an activity.
If the price of a good increases, all else the same, then the consumer's total utility will
A) increase. B) decrease. C) remain the same as consumption shifts to cheaper goods. D) decrease if there are no substitutes for the good and remain the same if there are substitutes for the good.
Individuals who purchase services and goods for the purpose of consumption are:
A. consumers. B. agents. C. workers. D. managers.
Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that:
A. the quantity of bananas purchased determines the price of bananas. B. all factors other than the price of bananas (for example, consumer tastes and incomes) are assumed to be constant. C. economists can conduct controlled laboratory experiments. D. one cannot generalize about the relationship between the price of bananas and the quantity purchased.