Shel and Fran are neighbors. They work at the same firm and hold the same title. Shel finds that when Fran's consumption rises, Shel feels worse off. Fran feels the same way about Shel's consumption. Suppose the firm that employs both Fran and Shel begins to offer one hour of overtime at 1.5 times their base hourly wage. It is likely that:
A. Fran will work more but not Shel.
B. both Fran and Shel will work more.
C. Shel will work more but not Fran.
D. neither Fran nor Shel will work more.
Answer: B
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Self interest
A) reflects choices that are best for the individual who makes them. B) reflects choices that are best for society as a whole. C) occurs only when wants exceed available resources. D) cannot be used to determine how goods are produced. E) has nothing to do with determining what goods are produced.
If newspaper headlines detailed an increased American interest in British goods, which of the following would we expect to observe in the market for pounds?
a. An increase in supply, a depreciation of the pound, and a larger number of pounds traded b. An increase in demand, a depreciation of the pound, and a smaller number of pounds traded c. An increase in demand, an appreciation of the pound, and a larger number of pounds traded d. A decrease in demand, a depreciation of the pound, and a smaller number of pounds traded e. A decrease in supply, an appreciation of the pound, and a smaller number of pounds traded.
In the figure above, Nike maximizes its profit if it sells ________ pairs of shoes per day
A) 120 B) 87 C) 137 D) 150
Average cost equals total cost multiplied by the number of units of output
a. True b. False Indicate whether the statement is true or false