The dual approach to the consumer's problem is to choose:
A) the highest indifference curve that just touches the budget line.
B) the least-cost budget line required to achieve a given level of utility (satisfaction).
C) the maximum income required to achieve a given level of utility (satisfaction).
D) all of the above
B
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An increase in nonlabor income leads to
a. a fall in the quantity of labor supplied and in consumption. b. a fall in the quantity of labor supplied but an increase in consumption. c. an increase in the productivity of labor. d. a fall in the wage rate.
What assumptions are necessary for a market to be perfectly competitive? Explain why each of these assumptions is important
What will be an ideal response?
The demand for steel has decreased in July without any change in supply. Six months later there still has been no change in steel prices. This is an example of a
A. macroeconomic price. B. price control. C. sticky price. D. price floor.
The difference between nominal GDP and real GDP is
A) the indirect taxes used in their calculations. B) the prices used in their calculations. C) that nominal GDP includes the depreciation of capital and real GDP does not. D) that nominal GDP includes net exports of goods and services and real GDP includes net imports. E) that real GDP includes the depreciation of capital and nominal GDP does not.