Refer to the figure above. Given the consumer's budget constraint, the consumption bundle that maximizes his satisfaction consists of:
A) 0 shirts and 40 pairs of trousers.
B) 10 shirts and 30 pairs of trousers.
C) 20 shirts and 15 pairs of trousers.
D) 35 shirts and 10 pairs of trousers.
C
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A profit maximizing price taker will produce at a level where
a. the wage equals the marginal product of labor. b. the marginal revenue product of labor equals the price of their output. c. the wage rate equals the price of their output. d. the marginal revenue product of labor equals the wage rate.
Which of the following is not a component of aggregate demand?
a. Investment expenditures b. Government expenditures c. Net exports d. All of the above are components of aggregate demand.
Unions often oppose increases in the prices of complementary inputs (for example, truck drivers may oppose increases in taxes on diesel fuel). They do this because increases in the prices of complementary inputs might:
A. increase the supply of competing labor through the output effect. B. increase the supply of competing labor through the substitution effect. C. decrease the demand for union labor through the output effect. D. decrease the demand for union labor through the substitution effect.
A black market is a market in which
A) goods are traded at prices above their legal maximum prices. B) sales taxes are effectively doubled. C) goods are sold at outlet prices. D) sales take place exclusively at outlet prices.