Suppose the demand for peaches decreases. What will happen to producer surplus in the market for peaches?
a. It increases.
b. It decreases.
c. It remains unchanged.
d. It may increase, decrease, or remain unchanged.
b
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When the average product is at its maximum,
A) the marginal product is increasing as output increases. B) the marginal product is negative. C) it is equal to the marginal product. D) total product is also at its maximum. E) total product is at its minimum.
The substitution effect of a decrease in the wage rate would lead most people to
a. supply less labor and demand less leisure. b. supply less labor and demand more leisure. c. supply more labor and demand less leisure. d. supply more labor and demand more leisure.
Over the past 25 years, child mortality has ________ and literacy has ________ in developing countries.
A. fallen; fallen B. risen; risen C. fallen; risen D. risen; fallen
An action that an individual takes in one period to try to control her behavior in a future period is called
A. Pavlovian behavior. B. behavioral conditioning. C. a maximin strategy. D. a commitment device.