Abby maximizes utility by allocating time among leisure, market work, and nonmarket work so that the
a. total utility of each is equal
b. average utility of each is equal
c. total utility per hour of each is equal
d. marginal utility per hour of each is equal
e. maximum amount of goods and services can be acquired
D
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Prejudice and discrimination are indistinguishable
Indicate whether the statement is true or false
Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A. real GDP will be Y2, and the price level will be P2. B. real GDP will be between Y1 and Y2, and the price level will be below P2. C. real GDP will be Y1, and the price level will be P1. D. real GDP will be between Y1 and Y2, and the price level will be above P1.
An outward rotation of the production possibilities frontier occurs when
A) traders specialize in and exchange the products of their comparative advantage. B) one trader steals from the other. C) traders produce goods at exactly the same levels of opportunity cost. D) one trader begins to produce both goods at a higher level of opportunity cost compared to the other.
According to Figure 6.1, the period from 1974 to 1995 is particularly remarkable for the slow growth of ________
A) output per worker B) labor input C) output D) capital input