The income effect and the substitution effect offset each other at point
A. I.
B. J.
C. K.
D. S.
B. J.
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The opportunity cost of leisure is
A) the substitution effect. B) the income effect. C) a person's income. D) a person's wage rate.
Herbert Simon has concluded that decision making in industry is often best described as
A. optimizing behavior. B. profit maximizing. C. satisficing. D. saturating.
Just as resources are scarce for the individual,
a. they are also scarce for the economy as a whole b. they are never scarce for the economy as a whole c. they are randomly abundant for other individuals d. there will be zero resources available for the economy as a whole e. the economy a whole is never faced with having to make rational choices about using resources
Which of the following is not an explicit cost?
a. Salaries. b. Sales taxes. c. Utilities, such as gas and electricity. d. Insurance. e. The firm owner's time.