Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $32

Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of the figures above best illustrates how this fall in price affects the demand curve for scooters?

A) Figure A B) Figure B C) Figure C D) Figure D E) None of the above answers is correct because the change in the price of a bicycle will affect the supply curve not the demand curve.

One of the problems with Lewis' concept of surplus labor is that

a. People who look like they are not working actually are achieving important development objectives. b. Productivity in subsistence agriculture is so low that all workers are constantly needed. c. Those no longer needed in agriculture have long ago left for the cities. d. Those whose labor is not needed at one time may be needed at other times. e. Surplus labor exists only in developed country agriculture.