If indifference curves and budget lines are used to analyze consumer choice, an inferior good will
a. escape detection when income rises.
b. be easily identified because the quantity purchased will fall as income rises.
c. be easily identified because the quantity purchased will rise as income rises.
d. be easily identified because it will change the slope of the budget line.
e. escape detection because this model does not show that relationship.
b
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If GDP grows more rapidly than population for a particular country over a period of time, then we can determine that
A. GDP must rise at a slower rate in the future. B. GDP per capita has increased. C. All citizens of this country are better off. D. Real GDP has decreased.
Over the last 50 years, how has
a. the labor force participation rate changed? b. the men's and women's labor force participation rates changed?
Suppose that, in the long run, a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. The long run market supply curve is:
A. vertical at 5 gallons per day. B. horizontal at $20 per gallon. C. horizontal at $50 per gallon. D. horizontal at $100 per gallon.
A minimum wage that is set below the equilibrium wage will
a. cause increased unemployment b. have no effect on employment c. cause the overall wage to increase d. cause the overall wage to decrease e. create more jobs