The total earnings of a worker are represented by E = 150 + $12(24 – L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 16 hours of leisure per day?
Multiple Choice Quizzes with Answer in English (Page: 403)
A price decrease causes a consumer’s “real” income to:
The substitution affect isolates the change in the consumption of a good caused by:
If the price of good X decreases, what will happen to the budget line?
Given that income is $750 and PX = $32 and PY = $8, what is the market rate of substitution between goods X and Y?
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and PX = $10, PY = $15, X = 30, and M = 600?
A decrease in the price of good Y will have what effect on the budget line on a normal X-Y graph?
The rate at which a consumer is willing to substitute one good for another, while still maintaining a given level of satisfaction is called the
Which combination of the properties given below rules out indifference curves that intersect one another?
The difference between a price increase and a decrease in income is that
If money income doubles and the prices of all goods triples, then the
Joe consumes 10 units of food and 12 units of clothing. Since food is an inferior good, a gift to Joe of a $12 gift certificate at a clothing store will
At any point on an indifference curve, the slope indicates
Consider a two good world, with commodities X and Y. If Y is an inferior good, then an increase in consumer income cannot
If the price of a good purchased by a utility maximizing consumer goes down, all other things remain the same, and the consumer’s income is adjusted so that he can just barely attain his previous level of satisfaction, and if the consumer had indifference curves of the usual shape it will be found that
Sam Voter prefers Ronald to Joe, Joe to Gary, and Gary to Ronald. Sam’s preferences
If widgets and gidgets are complements and both are normal goods, then an increase in the demand for widgets will result from
If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of ____?
If widgets and gidgets are complements and both are normal goods, then a decrease in the demand for widgets will result from
Consider a two good world, with commodities X and Y. Which of the following statements is correct?