If a firm offers to pay a worker $10 for each hour of leisure the worker gives up, the $10 implies the:
A. marginal rate of transformation between leisure and income.
B. marginal rate of substitution between leisure and income.
C. market rate of substitution between leisure and income.
D. market rate of transformation between leisure and income.
Answer: C
You might also like to view...
At a constant rate of exchange between currencies, higher inflation makes domestic goods sold abroad ____expensive and, hence, ________ short-run equilibrium output.
A. more; decreases B. less; increases C. more; increases D. less; decreases
Nominal GDP is $9.6 million dollars, real GDP is $9 million, and velocity is 1.2. The quantity of money is ________ million
A) $10.8 B) $12 C) $7.5 D) $8 E) $11.52
The basis of the benefits of specialization is
a. comparative advantage b. absolute advantage c. size of country d. identical production costs between two countries e. self-sufficiency
Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that
a. people respond to incentives. b. rational people think at the margin. c. people face tradeoffs. d. improvements in efficiency sometimes come at the expense of equality.