The fact that indifference curves are bowed in toward the origin
A) is not true.
B) follows from the fact that more is preferred to less.
C) follows from the property that the consumer likes diversity in his or her consumption bundle.
D) follows from the property that consumption and leisure are normal goods.
C
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If the explicit costs to a firm to produce a unit of output are $6 and the firm sells 200,000 units of output for $9 per unit, the accounting profit received by the producer is
A) $1.2 million. B) $850,000. C) $1.8 million. D) $600,000.
Excess capacity arises when firms cannot sell all of their output at the current market price
a. True b. False
One of the most significant developments in labor supply in recent times is the increase in the labor force participation of married women
a. True b. False Indicate whether the statement is true or false
Which of the following statements about incentives is true?
a. Changing one incentive can result in several unseen effects. b. Understanding how people respond to incentives helps government planners organize the economy. c. Fair-minded people who care about others will not be affected by incentives. d. Emphasizing incentives ignores altruistic nonmonetary values.