The optimal consumption bundle is the point representing a consumption-leisure pair that is on the
A) lowest possible indifference curve and is on or outside the consumer's budget constraint.
B) lowest possible indifference curve and is on or inside the consumer's budget constraint.
C) highest possible indifference curve and is on or outside the consumer's budget constraint.
D) highest possible indifference curve and is on or inside the consumer's budget constraint.
D
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Proponents of the flexible exchange rate system argue that under a fixed exchange rate system,
A) there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate. B) nations that experience persistent trade deficits might be tempted to impose trade barriers. C) nations might sacrifice their domestic economic policy goals for the sake of maintaining the exchange rate. D) b and c E) a, b, and c
That an increasing number of jobs that do not pay enough to subsist on is ____ theory of poverty.
A. a conservative B. a liberal C. both a liberal and a conservative D. neither a liberal nor a conservative
Suppose the current market wage rate (w) is $4. In the short run, a firm's marginal cost at the current output level is $2. What is this firm's marginal product of labor?
A) MPL = 0.5 B) MPL = 1 C) MPL = 2 D) MPL = 8
A government may be able to reduce the international value of its currency by:
A. selling its currency in the foreign exchange market. B. buying its currency in the foreign exchange market. C. selling foreign currencies in the foreign exchange market. D. increasing its domestic interest rates.