The budget line facing a household includes information on
A. prices of two goods and household income.
B. household income and the price of money.
C. the price of one good and household income.
D. the price of two goods but no information on household income.
E. preferences of goods at various prices.
Answer: A
You might also like to view...
The real interest rate ________ inflation ________
A) is unaffected in the long run by; because of the classical dichotomy B) moves one for one with expected; in the long run C) always increases with; but because of the Fisher effect lower expected inflation ensues D) all of the above E) none of the above
Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the 5th laborer?
A) 8 cabinets B) 7 cabinets C) 6 cabinets D) 4 cabinets
Refer to Table 13-1. The Table shows
A) a demand schedule with an inelastic segment from $7.50 to $6.50 followed by an elastic segment. B) a demand schedule with an elastic segment from $7.50 to $6.50 followed by an inelastic segment. C) an elastic segment of the demand schedule. D) an inelastic segment of the demand schedule.
Average costs
a. fall at all levels of output b. are falling when marginal costs are below average costs and rising when marginal costs are above average costs c. are falling when marginal costs are above average costs and rising when marginal costs are below average costs d. does not vary with output