Which of the following statements is true?
A) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time.
B) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time.
C) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them.
D) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
C
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Explain the relationships between the marginal product of labor and the demand for labor, and the marginal product of capital and the demand for capital
What will be an ideal response?
Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Complete the following statement. A collectively financed medical care system, providing universal coverage to a basic benefits package for everyone that includes the ability to purchase additional coverage with a supplemental insurance policy _____.
a. will do harm to the more vulnerable segments of the population - poor, sick, and elderly b. may not be equal, but is welfare enhancing for everyone c. seldom works when actually applied in the real world d. is unfair because it creates a two-tiered system
Refer to the graph shown.
If suppliers can restrict output from M to L, the price will:
A. rise from PM to PL. B. fall from PL to PM. C. fall from PM to PL. D. rise from PL to PM.