Sadie works at a factory for $15 an hour and typically works 40 hours a week. Sadie gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at $20 an hour. Her response:
A. implies her labor-supply curve is upward sloping.
B. is typically what is observed.
C. tells us the price effect outweighed the income effect of her pay raise.
D. All of these statements are true.
Answer: D
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You sell your good in a perfectly competitive market where the market price is $33.00. When you sell 100 units your total revenue is $3,300. When you sell 101 units:
A. total revenue increases by less than $33. B. total revenue increases by exactly $33. C. total revenue increases by more than $33. D. total revenue may increase or decrease.
How is elephant preservation affected by property rights?
What will be an ideal response?
Joe's monthly income increases from $1,000 to $2,000. As a result, he decreases the number of his fast food meals from 20 to 5 per month. To Joe, are fast-food meals a normal or an inferior good? What kind of elasticity can tell the answer? Explain
What will be an ideal response?
Maximizing the utility of the person with the minimum utility is known as
A. the minimax criterion. B. the maximin criterion. C. the Hicks-Kaldor criterion. D. the Corlett-Hague Rule.