The substitution effect of a real wage increase is observed when
A) the higher wage causes workers to take more leisure and work more hours.
B) the higher wage causes workers to take more leisure and work fewer hours.
C) leisure's higher opportunity cost causes workers to take less leisure and work more hours.
D) leisure's higher opportunity cost causes workers to take more leisure and work fewer hours.
C
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The price of a good is
A) always equal to the cost of producing the good. B) never affected by the number of buyers and sellers. C) usually determined in a market. D) None of the above.
The table below shows cost data for a firm that is selling in a purely competitive market.OutputAverage Variable CostAverage Total CostMarginal Cost10$5.00$15.00$3124.0013.004144.7511.506165.759.009209.0012.0014Refer to the above cost chart. If the marginal revenue is $6, what output should the firm produce?
A. 14 B. 12 C. 20 D. 10
The set of goods and services that maximizes the level of satisfaction for each consumer subject to limited income is
A) the consumer optimum. B) diminishing marginal utility. C) increasing marginal utility. D) substitution effect.
Nations with single payer systems typically have
A. better access to high-tech medical solutions than in the U.S. B. higher life expectancies than in the U.S. C. serious inequality in the access to basic care. D. lower tax rates than exist in the U.S.