The condition, MRS1,C = w, describes the representative consumer's
A) investment decision.
B) consumption - savings decision.
C) current period work - leisure decision.
D) future period work - leisure decision.
C
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Which of the following would increase in response to a increase in the price of ironing boards?
a. the quantity of irons demanded at each possible price of irons b. the equilibrium quantity of irons c. the equilibrium price of irons d. None of the above is correct.
A decrease in the tax on capital income _______ the real interest rate and ________ investment and economic growth.
Fill in the blank(s) with the appropriate word(s).
In finance, leverage is using:
A. the equity one owns to pay for investments planned in the future. B. borrowed money to pay for investments. C. forecasted future earnings to pay for current loans. D. predicted earnings to pay for current investments.
Suppose Lois usually buys two cups of coffee for two dollars each and one scone for two dollars each. If the price of scones falls to one dollar each and she now buys two cups of coffee and two scones, this illustrates the
A) substitution effect. B) marginal rate of substitution. C) total utility effect. D) real-income effect.