Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/2 . To maximize total utility, she should
a. buy more pizzas and fewer blouses
b. buy fewer pizzas and more blouses
c. continue to buy the same quantities of pizza and blouses
d. spend more time consuming pizza
e. spend more time buying blouses
B
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If the share of population employed in two countries is the same, average living standards will be higher in the country with:
A. lower average labor productivity. B. higher average labor productivity. C. the smaller population. D. the larger population.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A). If there is a surplus of motorcycles how will the equilibrium point change?
A) The equilibrium point will move from A to B. B) There will be no change in the equilibrium point. C) The equilibrium point will move from A to C. D) The equilibrium point will move from A to E.
Refer to Table 2-17. What is James's opportunity cost of making a tricycle?
A) 2 tricycles B) 3/4 of a wagon C) 1/2 of a wagon D) 1/2 of a tricycle
Refer to Figure 17-3. Which of the panels in the diagram best represents an individual's labor supply curve?
A) Panel A B) Panel B C) Panel C D) Panel D