Ellie and Jenny both brought grapes and crackers in their school lunches. If they have different marginal rates of substitution of grapes for crackers, their parents have not allocated lunch resources efficiently.
Answer the following statement true (T) or false (F)
True
Rationale: If they both have some of each, then efficiency requires their MRS to be the same --- otherwise they can trade and make each other better off.
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Unplanned inventory increases: a. tend to result in an increase in income
b. tend to result in an increase in real output. c. result in an increase in production. d. signal that demand was weaker than expected.
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. In relation to column (3), a change from column (1) to column (2) would mostly likely be caused by:
A. consumers expecting that prices will be higher in the future. B. government subsidizing production of the good. C. reduced taste for the good. D. an increase in input prices.
If the nominal wage is $10 per hour and the expected price level is 2 and the actual price level is 4, then:
a. the expected real wage rate is greater than the actual real wage rate. b. the expected real wage rate is greater than the actual nominal wage rate. c. the expected real wage rate is less than the actual real wage rate. d. the actual real wage rate is greater than the actual nominal wage rate.
Which of the following does NOT help explain why oligopolies exist?
A. product homogeneity B. mergers C. barriers to entry D. economies of scale