Using Scenario 1 what is the maximum grade you could earn in any one course? If you wanted to earn a grade of 90 in French but no better than a 70 in economics are you operating on your budget constraint? Why or why not?
What will be an ideal response?
The maximum grade you could earn in either course is a 100 . Fifteen hours times 2 points is 30 points plus the original 70 that you were going to get without studying. If you only care about making a 90 in French and no better than a 70 in economics then you are not operating on the budget constraint. Why? It would only require 10 hours of your time to earn the 90 . You would have 5 hours left over.
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In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:
A. nominal income declined by more than personal income. B. the price level rose by more than nominal GDP. C. real wages declined by more than real GDP. D. the price level fell by more than real GDP.
Answer the following statements true (T) or false (F)
1. The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve. 2. The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping. 3. The reason why the long-run supply curve for a purely competitive industry may be upward-sloping is because of diminishing marginal returns. 4. An upward-sloping long-run supply curve indicates a constant-cost industry. 5. Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.