Ben is exhausting his money income consuming products A and B in such quantities that MUa/Pa = 5 and MUb/Pb = 8. Ben should purchase:
A) more of A and less of B.
B) more of B and less of A
C) more of both A and B.
D) less of both A and B.
Ans: B) more of B and less of A
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Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to increase from point a to point b?
A. a tax on wheat production B. an increase in the price of wheat C. a decrease in the price of wheat D. a subsidy for wheat production
The relationship between the number of hours a student studies for an exam and the exam grade is most likely graphed as
A. a line sloping up from lower right to upper left. B. a line sloping up from lower left to upper right. C. a horizontal or flat line. D. a line sloping down from upper left to lower right.
The marginal revenue product of a resource depends on the following factors, except:
A. The price of the resource B. The price of the product C. The quantity of the resource employed D. The marginal product of the resource
Refer to the below graph for the labor market. The government decides to impose a wage tax as shown on the graph. The result is that:
A. More workers enter the labor market due to the higher wage rate being paid
B. The employers and laborers will split the tax evenly, each paying $.25 to the government
C. The wage received by laborers will rise to $5.40 and the labor cost to employers will fall to $4.90
D. The wage received by laborers will fall to $4.90 and the labor cost to employers will rise to $5.40