The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $20 and the price of a unit of capital is $8, then the economically efficient technique is

The hourly wage rate is the opportunity cost of one hour of leisure because

A) the person's substitution effect exceeds his or her income effect. B) that is what a person gives up to enjoy the hour of leisure time. C) the person must work for a living. D) the person prefers leisure to work regardless of the wage.

In order to simplify a complex situation, economic models often treat constraints as unalterable

Indicate whether the statement is true or false