Suppose a consumer has an income of $16, the price of A is $2, and the price of B is $1. Which combination is on the consumer's budget line?
A. 6A and 5B
B. 8A and 16B
C. 4A and 9B
D. 5A and 6B
Answer: D
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The fishing and whaling occupations in the early colonies:
a. never amounted to a significant economic force. b. were a major influence in the early colonial economy. c. started only in the eighteenth century. d. were mixed in their economic impact, with fishing being the least important and whaling being most important.
How does opportunistic behavior affect a contract?
Unit labor cost is equal to the
A. Wage rate divided by MPP. B. Wage rate. C. The change in labor cost divided by the change in output. D. Marginal cost.
Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25. Craig Raymond, however, is a safer driver than the average female driver under age 25. Craig's higher insurance rate reflects:
A. monopoly power. B. statistical discrimination. C. the insurance firm's taste for discrimination. D. human-capital discrimination.