Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. If the restaurant charges the single price of $8 per meal, what is its profit from senior customers?
A. $1,200
B. $1,500
C. $2,280
D. $2,560
Answer: A
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Assume that Oscar is maximizing his total utility and that the equal marginal principle holds by the time he is done allocating his budget.If MUa/Pa = 100/$35, MUb/Pb = 300/?, and MUc/Pc = 400/?, the prices of products B and C
A. cannot be determined from the information given. B. must be $105 and $175, respectively. C. must be $100 and $200, respectively. D. must be $105 and $140, respectively.
The existence of money leads to
a. greater specialization in production, but not to a higher standard of living. b. a higher standard of living, but not to greater specialization. c. greater specialization and to a higher standard of living. d. neither greater specialization nor to a higher standard of living.
One explanation for the Leontief paradox is that the US has an advantage and exports goods produced with
What will be an ideal response?
Which of the following is an example of money illusion?
A. An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 5 percent. B. An individual will neither increase nor decrease the number of hours she is willing to work when the nominal wage rises by 10 percent and the overall price level rises by 10 percent. C. An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 20 percent. D. none of these