Economists Gary Becker and Kevin Murphy are associated with which of the following?
A) They discovered the first example of a Giffen good.
B) They have argued that social factors are not important in explaining the choices consumers make.
C) They both believe that consumers appear to receive utility from consuming goods they believe are popular.
D) They discovered that price changes have both income and substitution effects.
Answer: C
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Dividing the value of real GDP by aggregate labor hours gives
A) the net domestic product. B) labor productivity. C) the size of the labor force. D) the rate of capital accumulation.
Refer to Table 1-3. What is Santiago's marginal cost if he decides to stay open for an extra two hours instead of one hour?
A) $18 B) $36 C) $38 D) $102
You are given the following information on the macroeconomy:
Consumption: 200 + 0.75Y Investment: 100 + 0.10Y Government Spending 500 Exports 100 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.
If Joe has budget constraint C in the graph shown, what is the relative price of three gallons of milk?
This graph shows three different budget constraints: A, B, and C.
A. 2 cases of soda
B. 4 cases of soda
C. $12
D. $9