If Molly Bee increases her work hours when her wage increases, then
A) the substitution effect of the wage increase outweighs the income effect.
B) the income effect of the wage increase outweighs the substitution effect.
C) leisure is an inferior good to Molly.
D) Molly is spending beyond her means.
A
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When the isocost line is tangent to the isoquant, then
A) MRTS = -w/r. B) the firm is producing that level of output at minimum cost. C) the last dollar spent on capital yields as much extra output as the last dollar spent on labor. D) All of the above.
The Endangered Species Act has
A) caused a loss of economic activities on some private land. B) saved all endangered species without affecting anyone. C) further reduced the number of endangered species. D) had no impact on either the number of endangered species or other economic activities.