Suppose earnings are given by E = $60 + $7(24 – L), where E is earnings and L is the hours of leisure. What is the maximum this worker can earn in three (3) days?
Correct answer(s):
- $684
Subject
Economics
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Quizzes in Economics
Suppose earnings are given by E = $60 + $7(24 – L), where E is earnings and L is the hours of leisure. How much is this person working if their daily earnings are $116?
Correct answer(s):
- 16 hours
Normally owners of firms should try to induce their managers to care:
Correct answer(s):
- Solely about profits
A worker’s total earnings for one day is $100. He received a $20 fixed payment and consumes 14 hours of leisure. What is the hourly wage rate?
Correct answer(s):
- $8
The total earnings of a worker are represented by E = 100 + $10(24 – L), where E is earnings and L is the number of hours of leisure. How many hours of leisure are consumed if this worker’s total earnings are $160?
Correct answer(s):
- 18 hours
The total earnings of a worker are represented by E = 100 + $10(24 – L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 14 hours of leisure per day?
Correct answer(s):
- $200
If a worker receives a fixed payment of $100 plus $10 for every hour she works, what is the maximum total earnings the worker can receive if they are restricted to a maximum of 12 hours of work per day?
Correct answer(s):
- $220
If you were running an advertising campaign for designer men’s suits, you should target families with:
Correct answer(s):
- Higher incomes
If you wish to open a store and you do not like risk, it would be wise to sell:
Correct answer(s):
- A mix of normal and inferior goods
A price increase causes a consumer’s “real” income to:
Correct answer(s):
- Decrease
The substitution affect isolates the change in the consumption of a good caused by:
Correct answer(s):
- The change in the market rate of substitution
How does a decrease in the price of good X affect the market rate of substitution between goods X and Y?
Correct answer(s):
- It decreases
What are the advantages to a firm of selling gift certificates?
Correct answer(s):
- Reduced strain on the refund department and greater quantity if your good is an inferior good
Which of the following is most likely not to be an example of a normal good?
Correct answer(s):
- Bus travel
If an increase in income causes a decrease in the consumption of good Y we know that good Y is:
Correct answer(s):
- An inferior good
If you are in the business of selling chicken and the price of selling chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?
Correct answer(s):
- Increase the inventory
Which of the following pairs of goods is probably not an example of substitutes?
Correct answer(s):
- Hamburgers and ketchup
After a price decrease for good X, the new consumer equilibrium level of good X will be:
Correct answer(s):
- Indeterminate without more information
At the point of consumer equilibrium the slope of the budget line is equal to the:
Correct answer(s):
- Marginal rate of substitution
If the price of good X increases, what will happen to the budget line?
Correct answer(s):
- It will become steeper