Suppose the labor supply equation is L = (W/3) - (4/3). The wage rate is initially 5. What is the amount of producer surplus here?
What will be an ideal response?
Putting in a wage of 5 gives L* = 1/3. Therefore, the producer surplus is (1/2)(1/3)(1) = 1/6.
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Since 1925, the longest recession in the United States lasted:
A. 120 months. B. 43 months. C. 60 months. D. 21 months.
In order to draw an individual's budget line, we must know
A) prices and preferences. B) prices and income. C) income and preferences. D) prices, income, and preferences.
Which of the following correctly lists what is included in the consumption component of GDP?
a. household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods b. household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services c. household purchases of services, nondurable goods, and all durable goods d. household purchases of services, nondurable goods, and durable goods other than residential construction
Assume a consumer purchases a combination of goods X and Y such that MUx / Px = 20 units of utility per dollar and MUy / Py = 10 units of utility per dollar. To maximize utility, the consumers should buy:
A. less of X and more of Y. B. less of both X and Y. C. more of both X and Y. D. more of X and less of Y.