Exhibit 6A-4 Consumer equilibrium
?
Given the budget line and indifference curves shown in Exhibit 6A-4, at point D:
A. Px exceeds Py.
B. MRS = Px / Py.
C. MUx = MUy.
D. MRS = Py / Px.
Answer: B
You might also like to view...
If only one firm in an industry could take advantage of a reduced wage and all other firms continue paying the old wage, how would one best describe the one firm's reaction to this reduced wage assuming labor is the only variable input? The
marginal revenue product of labor curve A) would remain unchanged, and the firm would hire more labor at the lower wage. B) shifts to the left, and the firm hires more labor at the lower wage on the new curve. C) shifts to the right, and the firm hires more labor at the lower wage on the new curve. D) shifts to the left, and the firm hires less labor at the lower wage on the new curve. E) shifts to the right, and the firm hires less labor at the lower wage on the new curve.
According to the text, studies of 18th century colonial demographics indicate that, compared to Europe,
a. the birthrate in the colonies was lower. b. women in the colonies tended to marry later in life. c. the child mortality rate in the colonies was lower. d. average life expectancy for males in the colonies was lower. e. All of the above.
The long-run growth in the economy depends on all of the following, except:
a. the growth in productive resources. b. the level of technological development in the country. c. the increase in the availability of inputs. d. the increase in the productivity of inputs. e. the number of economic contractions witnessed in a year.
If you pay a premium of 10 cents per bushel for a Corn put option with a strike price of $6.60, what's the most you can lose?
A. $0.10/bu B. $6.60/bu C. $6.70/bu D. Your potential loss is unlimited