The phrase "no such thing as a free lunch" means
a. people must face tradeoffs.
b. rational people think at the margin.
c. people respond to incentives.
d. trade can make everyone better off.
a
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Labor productivity increases if
i. human capital decreases. ii. technology advances. iii. quality of education decreases. A) Both ii and iii B) Both i and ii C) i only D) ii only E) iii only
Refer to the table above. If you are told that Country B is very much richer than Country A, then the correct answer is
A) country B will export good S. B) country A will export good S. C) both countries will export good S. D) trade will not occur between these two countries. E) both countries will import good S.
Scope of Services An apartment owner has contracted for lawn mowing services for a number of apartment complexes he owns. He negotiated a price per month but the scope of services to be performed remained a bit vague. Why is he disappointed that the winning contractor provides less than the desired level of services?
At the unique point of consumer equilibrium, the:
a. distance between indifference curves is maximum. b. distance between the budget line and the indifference curve is maximum. c. marginal utility ratio of the two goods is equal. d. marginal rate of substitution (MRS) equals the slope of the budget line.