Lisa's hourly pay increases from $8 to $10 as her performance improves. We can conclude that:
a. her marginal cost of leisure declines.
b. her opportunity cost of leisure increases.
c. her opportunity cost of work increases.
d. her marginal cost of work declines.
B
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The primary tool utilized by the Federal Reserve today in conducting monetary policy is
a. the discount rate. b. reserve requirements. c. open market operations. d. selective credit controls.
A move from one point on a contract curve to another point on the contract curve will make
A) both individuals better off. B) both individuals worse off. C) one individual better off and the other individual worse off. D) the goods more expensive.
For a cruise liner deciding how to price its rooms, if the cost of overpricing is higher than the cost of underpricing, then the management of the cruise liner should
a. Price lower than what they expect would fill capacity b. Price higher than what they expect would fill capacity c. Price such that they would expect to just fill capacity d. None of the above
If the government spending multiplier is 2 and government purchases increase by $200 billion, output will increase by
A. $100 billion. B. $400 billion. C. $500 billion. D. $1,600 billion.