Which of the following will raise consumer expenditures?
A) an increase in interest rates B) an increase in the price level
C) a general decline in housing prices D) an increase in expected future income
D
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Refer to Figure 2-14. Which country has a comparative advantage in the production of popsicles?
A) Greenland B) They have equal productive abilities. C) Iceland D) neither country
Apply the concepts of menu costs and staggered price setting to the labor market
What will be an ideal response?
Refer to the following figure. The price of capital is $50 per unit:
What is the marginal rate of technical substitution at each cost minimizing equilibrium point?
A. 0.40 B. 2.00 C. 2.50 D. 0.80 E. impossible to tell without marginal products
The market will overproduce goods that have external costs because
A. Producers cannot keep these goods from consumers who do not pay, so they have to produce greater amounts. B. Producers experience higher costs than society. C. Producers experience lower costs than society. D. The government is not able to produce these goods.