The condition to decide on the optimal amount of leisure is that:
A) the average benefit of leisure should be equal to zero.
B) the total benefit of leisure should be equal to the wage rate.
C) the average benefit of leisure should be equal to the wage rate.
D) the marginal benefit of leisure should be equal to the wage rate.
D
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The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. Automobile owners would pay a larger part of this tax than what is shown in the figure if the
A) demand were more elastic. B) demand were more inelastic. C) supply were more inelastic. D) None of the above because the buyers always pay the entire amount of the tax.
The slope of an isocost line ________ and equals the negative of ________
A) increases as we move down the line; the ratio of input prices B) is constant; the ratio of input prices C) is constant; the ratio of the marginal products D) decreases as we move down the line; the ratio of the marginal products