A consumer's willingness to trade one good for another can be expressed by the consumer's
A) indifference curve.
B) marginal rate of substitution.
C) Both A and B above.
D) None of the above.
C
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Charging risk-based insurance premiums is a time-honored principle of insurance management to reduce
A) moral hazard. B) adverse selection. C) free riding. D) principal-agent problems.
Which of the following would be likely to raise your opportunity cost of attending a big basketball game this Sunday night? a. A friend calls you up and offers you free tickets to a concert by one of your favorite bands on Sunday night. b. Your employer offered you double your usual wage to work this Sunday night
c. Late Friday afternoon, your physics professor makes a surprise announcement that there will be a major exam on Monday morning. d. All of the above would likely raise the opportunity cost of attending the game.
The "representative firm" raises its output level as a result of entry in a competitive market.
a. true b. false
Which of the following statements correctly describes the curves in the figure?
A) Curve A could represent either the average product curve or the marginal product curve. Curve B represents the total product curve. B) Curve B could represent either the average product curve or the marginal product curve. Curve A represents the total product curve. C) The marginal product of labor curve is represented by curve B and the average product of labor curve is represented by curve A. D) The marginal product of labor curve is represented by curve A and the average product of labor curve is represented by curve B.