Consider a consumer choosing between spending her money on food, F, or clothing, C. Assume that a unit of food and a unit of clothing have the same price, and that the consumer can afford a total of 20 units of either food or clothing. If B stands for benefits then "F + C = 10" is the:
A. optimal solution.
B. objective function.
C. constraint.
D. first-order condition.
C. constraint.
You might also like to view...
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the comparative advantage in the production of:
A. iPods only. B. tablets only. C. both iPods and tablets. D. neither iPods nor tablets.
If the price of good X increases and this causes an increase in the demand for good Y, then goods X and Y are substitute goods
a. True b. False Indicate whether the statement is true or false
An economic function of criminal law is to
a. reduce opportunities for Pareto improvements b. reduce the number of involuntary exchanges c. define property rights d. increase prices in the economy e. protect involuntary exchanges in the economy
Neoclassical economists who focus on potential GDP as the primary determinant of real GDP argue that the long-run aggregate _______________ curve is located at potential GDP.
a. demand b. supply c. production d. labor