Suppose an individual's MRS (of steak for beer) is 2:1 . That is, at the current consumption choices he or she is willing to give up 2 beers to get an extra steak. Suppose also that the price of a steak is $1 and a beer is 25ยข. Then in order to increase utility the individual should
a. buy more steak and less beer.
b. buy more beer and less steak.
c. continue with current consumption plans.
d. Not enough information to answer the question.
b
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The increase in international trade in the United States is partly due to
a. improvements in transportation. b. advances in telecommunications. c. increased trade of goods with a high value per pound. d. All of the above are correct.
The _______________ supports the contention that there are non-competing groups in the labor market.
A. living wage B. dual labor market theory C. backward-bending labor supply curve D. marginal revenue product
In this graph, at point PL1, price level is ______.
a. high because of a recession
b. low because of a recession
c. unsustainable in the short run
d. unsustainable in the long run
A rightward shift of the aggregate demand curve will increase real domestic output and the price level in the short run.
Answer the following statement true (T) or false (F)