Individual Choice
What will be an ideal response?
The decision by an individual of what to do, which necessarily involves a decision of what not to do
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Use the following table to answer the next question. All figures in the table below are in billions of dollars. RGDPAggregate Expenditures (Closed Economy)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If exports should decrease by $20 billion at each level of real GDP, other factors constant, then the equilibrium real GDP for the economy will be
A. $500 billion. B. $450 billion. C. $550 billion. D. $650 billion.
Suppose that a firm can produce its output at either of two plants. If profits are maximized, which of the following statements is true?
A) The marginal cost at the first plant must equal marginal revenue. B) The marginal cost at the second plant must equal marginal revenue. C) The marginal cost at the two plants must be equal. D) all of the above E) none of the above
When individuals are debating whether to supply labor, they think about all of the following except:
A. the benefit of more income for each hour worked. B. the cost in terms of forgone leisure. C. whether the benefits outweigh the costs. D. the level of profits they bring to the firm.
Is the following quotation consistent with the theory of consumer behavior? “The yield on time spent working increases as the result of economic growth. Productivity per hour rises. This means that the time allocation which has represented
equilibrium at our previous income level is disrupted. The yield on time devoted to other activities must also be raised. We are aware that time in production becomes increasingly scarce with economic growth. What we will now claim in addition to this is that changes in the use of time will occur, so that the yield on time in all other activities is brought into parity with the yield on working time. In other words, economic growth entails a general increase in the scarcity of time.” (From: Staff an Tinder, The Harried Leisure Class) Please provide the best answer for the statement.