According to Say's Law, people:
A. supply goods in order to obtain other goods.
B. demand goods in order to maximize their welfare.
C. demand goods so they can supply them to others.
D. supply goods in order to accumulate profits.
Answer: A
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A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?
a. $26,000. b. $66,000. c. $78,000. d. $52,000. e. $72,000.
The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2015, the base year, the typical consumer purchased 10 books for $20 each and 200 hamburgers for $1 each. In 2017, the typical consumer purchased 12 books for $23 each and 300 hamburgers for $1.15 each. The consumer price index for 2017 on Planet Econ equals:
A. 1.00 B. 1.45 C. 1.25 D. 1.15
In comparing one market basket, A, to others to the northwest or southeast, we can say that a typical consumer will
a. prefer A to any other market basket. b. prefer any other market basket to A. c. be indifferent between A and any other market basket. d. find any of the above are possible.
At the XYZ Co, a unit of capital costs 3 times as much as a unit of labor. If the isoquants are convex, and the firm does not change its input mix in the long run, we can conclude that
A) MPK = 3 ? MPL. B) the firm will not hire any capital. C) the firm will hire 3 times as much labor as capital. D) the firm will hire 3 times as much capital as labor.