Sam consumes only sandwiches and soda and maximizes his total utility. Suppose that the price of a sandwich falls. At the new consumer equilibrium, Sam substitutes ________ for ________
Sam's marginal utility from soda ________ and his marginal utility per dollar spent on sandwiches ________. A) sandwiches; soda; increases; increases
B) soda; sandwiches; decreases; increases
C) sandwiches; soda; increases; decreases
D) soda; sandwiches; stays the same; stays the same
A
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Last year in a nation to the south, net domestic product at factor cost equaled $3,300 billion
Indirect taxes minus subsidies equaled $200 billion, depreciation equaled $800 billion, the statistical discrepancy equaled zero, and net operating surplus equaled $150 billion. The country's GDP was A) $2,300 billion. B) $3,500 billion. C) $4,300 billion. D) $4,450 billion. E) $4,150 billion.
Suppose the money wage rate and the price level both fall by 5 percent. As a result
A) the quantity of labor demanded increases. B) the quantity of labor demanded decreases. C) the quantity of labor demanded does not change because there is no change in the real wage. D) people are worse off and there is more unemployment.
Which of the following statements is false?
A) An implicit cost is a nonmonetary opportunity cost. B) Economists consider all costs to be implicit costs. C) Economic costs include both accounting costs and implicit costs. D) An explicit cost is a cost that involves spending money.
Economies of scale are most closely associated with a firm's
A. ATC curve. B. AVC curve. C. MC curve. D. Demand curve.