When the indifference curve is tangent to the budget constraint,
a. a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes.
b. the consumer is likely to be at a sub-optimal level of consumption.
c. income is at its optimum for a consumer.
d. indifference curves are likely to intersect.
a
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Refer to the above table. What does the marginal revenue product equal when 27 workers are hired a week?
A) $1040 B) $216 C) $16.25 D) $8
Consider the supply of orange juice. If the price of orange juice rises, which of the following occurs?
a. Producers of orange juice are satisfied with their revenue and leave production unchanged. b. Producers of orange juice decrease the quantity of orange juice that they produce. c. Producers of orange juice go out of business, and the supply of orange juice shifts to the left. d. Producers of orange juice increase their production of orange juice.
Horizontal equity is a difficult concept to implement because
A. it is difficult to determine how unequally unequals should be treated. B. it is difficult to measure ability to pay. C. it is difficult to determine which people are equally situated. D. people object to the use of absolute tax liability instead of percentage of income.
Researchers demonstrate conclusively that drinking 4-6 ounces of ginger ale each day increases life expectancy by 3 years. What happens in the market for ginger ale?
A) The equilibrium price falls, and the equilibrium quantity rises. B) The equilibrium price rises, and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.