The condition, MRSC,C' = 1 + r, describes the representative consumer's

A) investment decision.
B) consumption - savings decision.
C) current period work - leisure decision.
D) future period work - leisure decision.

B

Economics

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If each player in a game uses a strategy that results in a Nash equilibrium outcome, the players are most likely to say

A) "I don't like my choice, because I think I could have done better." B) "Given the strategies chosen by the other players in the game, I probably could have done better if I had more time." C) "Given the strategies chosen by the other players in the game, I made the best possible choice." D) "There was no real strategy on my part, I basically made an educated guess."

Economics

If only one firm in an industry could take advantage of a reduced wage and all other firms continue paying the old wage, how would one best describe the one firm's reaction to this reduced wage assuming labor is the only variable input? The

marginal revenue product of labor curve A) would remain unchanged, and the firm would hire more labor at the lower wage. B) shifts to the left, and the firm hires more labor at the lower wage on the new curve. C) shifts to the right, and the firm hires more labor at the lower wage on the new curve. D) shifts to the left, and the firm hires less labor at the lower wage on the new curve. E) shifts to the right, and the firm hires less labor at the lower wage on the new curve.

Economics