Refer to the diagram and assume the economy is operating at equilibrium point w. In the short run, an increase in the price level from P 2 to P 3 would move the economy from point w to point:
A. v.
B. x.
C. u.
D. z.
B. x.
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Assume that an individual with an opportunity cost of time of $20 per hour has to choose between renting four apartments. The rents of the four apartments and the individual's monthly commuting time to work are shown in the following table
Calculate the direct cost, indirect cost, and total cost that the individual will incur if she rents any of these apartments. Also, determine the apartment that is optimum for the individual. Graph the total cost involved for the various choices. Apartment Monthly Commuting Time (hours) Rent ($) 1 60 2,800 2 90 2,200 3 120 1,500 4 150 1,400
In an economy with money, as opposed to barter, people are more likely to specialize in the production of goods and services
Indicate whether the statement is true or false
In each of the following scenarios, state whether the labor supply curve would shift to the left, to the right, not shift at all, or if the shift is ambiguous because there is more than one effect and they would move the curve in opposite directions
(a) The stock market rises sharply. (b) Fewer teenagers work while in school than before. (c) A large fraction of the population flees the country because of a bird flu epidemic. (d) The expected future wage declines and the stock market crashes. (e) The current real wage rate rises.
MPP is the additional output that results from a one-unit increase in use of the input
a. True b. False Indicate whether the statement is true or false