If an individual's budget constraint shifts, the individual's changes in consumption can be broken down into _____ and _____ effects
a. budget; consumption
b. income; substitution
c. utility; indifference
d. wealth; savings
b
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A monopolistically competitive firm is operating at a short-run level of output where price is $21, average total cost is $15, marginal cost is $13, and marginal revenue is $13. In the short run this firm should
A. increase the level of output. B. decrease the level of output. C. make no change in the level of output. D. reduce product price.
Workers who pursue an education directly increase their
A) financial capital. B) physical capital. C) human capital. D) saving.
The marginal physical product of labor is defined as
a. a firm's total output divided by total labor input. b. the extra output produced by employing one more unit of labor while allowing other inputs to vary. c. the extra output produced by employing one more unit of labor while holding other inputs constant. d. the extra output produced by employing one more unit of capital while holding labor input constant.
A higher interest rate will:
a. shift the consumption function upward b. shift the consumption function downward. c. make the consumption function steeper. d. make the consumption function flatter. e. cause an upward movement along the consumption function.