All of the following can be true about the optimal basket consumed by a consumer, except
a. The basket is on the budget line.
b. The person is spending all of their money on the basket.
c. The basket is on the highest indifference curve.
d. The budget line is tangent to an indifference curve at the optimal basket.
c. The basket is on the highest indifference curve.
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Of the in-kind programs, food stamps have the highest total annual cost
Indicate whether the statement is true or false
In economics, we observe that people consistently make irrational decisions in certain situations and choose to do something even if:
A. the benefits outweigh the opportunity costs. B. the opportunity costs outweigh the benefits. C. the benefits outweigh the sunk costs. D. the sunk costs outweigh the opportunity costs.
If a good is normal, then an increase in income will result in
a. an increase in the demand for the good.
b. a decrease in the demand for the good.
c. a movement down and to the right along the demand curve for the good.
d. a movement up and to the left along the demand curve for the good.
Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?
A. $250. B. $1,250. C. $1,500. D. $15,000.