If the indifference curves between two goods are L-shaped, the goods are
A) complementary goods.
B) substitute goods.
C) normal goods.
D) inferior goods.
A
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) What part of domestic output in country A is the total wage bill or total wage income before and after the immigration?
A. Area 0fad and area 0gce, respectively
B. Area 0fad and area bced, respectively
C. Area 0gbd and area bced, respectively
D. Area 0gbd and area 0gce, respectively
If Pearl is a risk averse, then
A) expected utility has nothing to do with her choices. B) she does not have diminishing marginal utility of wealth. C) she will not buy insurance. D) risk is costly to her.
Opportunity cost is the:
a. cost incurred when one fails to take advantage of an opportunity. b. price paid for goods and services. c. cost of the best option forgone as a result of choosing an alternative option. d. undesirable aspects of an option.
Since a monopolistically competitive firm faces a ____ demand curve, it will always operate ____ in long-run equilibrium
a. perfectly elastic; with excess capacity b. downward-sloping; with excess capacity c. downward-sloping; at an economically efficient scale d. perfectly inelastic; at an economically efficient scale