Consider the following three market baskets:
Food Clothing
A 15 18
B 13 19
C 14 17
If baskets B and C are on the same indifference curve, and if preferences satisfy all four of the basic assumptions, then:
A) A is preferred to C.
B) A is preferred to B.
C) Both A and B answer choices are correct.
D) none of the above
C
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Refer to Figure 5-16. How much is Amit willing to pay per street light to have 4 street lights installed?
A) $3,600 B) $2,700 C) $1,800 D) $900
When two nations agree to lower their tariffs against each other, they engage in
a. a customs union b. a free trade union c. geographical specialization d. a reciprocal agreement e. a comparative advantage
Contrast the effects of a U.S. tariff decrease and a U.S. tariff increase, ceteris paribus, on foreign exchange rates.
What will be an ideal response?
A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is
A. $10.00. B. $15.10. C. $10.10. D. ten cents.