The table above gives the utility from pens and pencils. If pens and pencils both cost $.25 each and the consumer has an income of $2.25, which of the following combinations maximizes the consumer's utility?
A) 3 pens and 6 pencils
B) 4 pens and 5 pencils
C) 5 pens and 4 pencils
D) 6 pens and 3 pencils
C
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If the minimum wage is set above the market wage,
A) highly-skilled workers will have a harder time finding jobs. B) the quantity of labor supplied will be below the quantity of labor demanded. C) unemployment will rise. D) All of the above are correct.
The New Deal allowed the federal government to reorganize and pursue economic planning
Indicate whether the statement is true or false
In perfect competition, each firm's output is a large fraction of total market supply
a. True b. False
A market is competitive if (i) firms have the flexibility to price their own product. (ii) each buyer is small compared to the market. (iii) each seller is small compared to the market
a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. (i), (ii), and (iii)