A firm manager with vertical indifference curves (output on the horizontal axis, profit on the vertical axis) views
Topic: The Theory of Individual Behavior Quiz ( MCQ and Answer )
The firm manager with indifference curves which are convex from the origin (output on the horizontal axis and profit on the vertical axis) views
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day. What is the equation for the worker’s opportunity set? (E is total earnings and L is leisure)
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day. What is the market rate of substitution between leisure and income?
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day. What is the minimum the worker can earn in a day?
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day. What are the maximum total earnings the worker can earn in a day?
If a firm offers to pay a worker $10 for each hour of leisure the worker gives up the $10 implies the
If a firm offers to pay a worker $10 for each hour of leisure the worker gives up then the opportunities confronting the worker will be given by the
Most workers view leisure and income as
Running a supermarket involves
If you include in your offerings some inferior goods, the demand for these products will increase
Many gourmet shops go out of business during recessions since they sell almost exclusively
When the price of a good increases with other things unchanged, the real income of the consumer
The substitution effect reflects how a consumer will react to a different
If you sell an inferior good, offering to sell gift certificates to those looking for a gift may result in
If a consumer is given a $10 gift certificate, good for items in store X and all items in store X are inferior goods, then consumer desires to consume
If a consumer is given a $10 gift certificate, good only for items in store X and all items in store X are normal goods, then the consumer desires to consume
Which is more preferred between a cash gift and an in-kind gift?
A cash gift causes the budget line to
An in-kind gift causes the budget line to
If income increases, then the
If the price of computers decreases, then the