After reading an economics textbook about labor supply and utility maximization, Amelia Ruiz said, "I don't allocate my time like that.". Her professor replied,
a. "You caught us. Economists do not know what they are talking about.".
b. "This proves that you will always choose to spend your time in nonmarket work.".
c. "You act as if you allocated your time to derive the same expected net marginal utility from the last unit of time spent in each alternative use.".
d. "Don't you want to use your unlimited resources to satisfy your finite wants?"
e. "It is obvious that labor supply is a derived demand based on marginal revenue product.".
C
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The area between the market price and the supply curve provides a measure of: a. consumer surplus
b. producer surplus. c. consumer surplus plus producer surplus. d. marginal utility.
The phrase "a stronger U.S. dollar" means that the dollar
a. is in equilibrium on the foreign exchange market b. does not fluctuate greatly c. has been depreciating d. has been appreciating e. buys more than one unit of a foreign currency