If an individual is maximizing his or her utility, his or her marginal rate of substitution of leisure hours for consumption will be:
a. equal to one divided by his or her wage rate.
b. greater than one divided by his or her wage rate.
c. equal to his or her wage rate.
d. less than his or her wage rate.
c
Economics
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When monetary and fiscal policymakers expand aggregate demand, which of the following costs is incurred in the short run?
a. Short-run aggregate supply decreases. b. The natural rate of unemployment increases. c. The price level increases more rapidly. d. The money supply increases less rapidly.
Economics
For a firm to maximize profits, the marginal product of the last dollar spent on each resource must be equal.
Answer the following statement true (T) or false (F)
Economics