If MUx/Px > MUy/Py, the consumer can increase utility by buying more of good x, which will cause the MUx to rise
a. True
b. False
B
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The rate at which one input can be exchanged for another without altering output is called
A. the marginal rate of technical substitution. B. the slope of the total product curve. C. the law of diminishing returns of labor. D. the slope of the marginal product of labor.
Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude that:
A. butterflies are a negative externality for Billy and Sammy. B. Denise will set up the butterfly garden without any help from her free-rider neighbors. C. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built. D. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up.
Shoe-leather costs refer to:
A. the money, time, and opportunity used to change prices to keep pace with inflation. B. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed at all. C. the time, money, and effort one has to spend managing cash in the face of inflation. D. labor costs associated with inflation.
Refer to the demand and supply diagram that relates to the health care market. If suppliers provide the quantity of health care demanded and insurance pays one-half of the equilibrium price of the health care good or service depicted, the immediate price to the consumer and the quantity of health care consumed would be:
A. P 1 and Q 1 .
B. P 1 and Q 2 .
C. P 2 and Q 2 .
D. P 2 and Q 1 .