John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517What is the lowest price per window that John would be willing to accept to spend 4 hours per day cleaning windows?
A. $2
B. $11
C. $3.50
D. $7
Answer: C
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What effect would an increase in the price of pork have on the demand for beef?
A) It would decrease the demand for beef. B) It would decrease the demand for beef only if the demand for beef is elastic. C) It would increase the demand for beef. D) It would increase the demand for beef only if the demand for beef is inelastic. E) It would have no effect, because a change in price affects only the quantity demanded, not the demand.
In what way does land differ from other inputs such as labor and capital?
What will be an ideal response?
If the total utility curve is a straight line, the marginal utility curve would be a:
A. an upward-sloping line with a slope of 1. B. a vertical line. C. downward-sloping line. D. a flat line with a slope of zero.
Suppose Country A, a labor-abundant country, produces only drink and furniture. The following equations illustrate the prices and costs of drink and furniture in the country, where the numbers indicate the amounts of labor and land needed to produce a unit of drink and furniture. 'W' is the wage rate and 'r' is the rental rate of land.Price of drink = 1w + 2rPrice of furniture = 2w + 1rAccording to this information, which of the following statements is true?
A. Labor is used relatively intensively in the production of furniture. B. The opportunity cost of producing furniture is higher than the opportunity cost of producing drink in Country A. C. The inputs are used in the same proportion in producing both commodities. D. The land to labor ratio in the production of furniture is higher than that in the production of drink.