Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C)
If the price of motorcycle side cars (a complement to motorcycles) decreases, and the wages of motorcycle workers increase, how will the equilibrium point change?
A) The equilibrium point will move from C to E.
B) The equilibrium point will move from C to B.
C) The equilibrium will first move from C to A, then return to C.
D) The equilibrium point will move from C to A.
B
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Expected wealth is a weighted average in which the weights are
A) average utilities. B) marginal utilities. C) total utilities. D) probabilities.
A cottage industry is one that
a. produces rural housing b. takes advantage of the division of labor c. uses highly specialized resources in a complex production process d. produces cottage cheese e. carries out production in workers' homes
Fiona and Alicia divide their time equally between ironing shirts and cooking meals. Fiona can iron 5 shirts and cook 2 meals in an hour. Alicia can iron 6 shirts and cook 1 meal in an hour. If they have to iron 15 shirts and cook 5 meals, who should specialize in which activity?
a. Fiona should do all the work. b. Alicia should do all the work. c. Fiona should specialize in cooking meals and Alicia should specialize in ironing shirts. d. Alicia should specialize in cooking meals and Fiona should specialize in ironing shirts.
Which of the following is NOT considered a determinant of income differences?
A. equity or fairness B. productivity C. age D. discrimination