Monica consumes only goods A and B
Suppose that her marginal utility from consuming good A is equal to 1/Qa, and her marginal utility from consuming good B is 1/Qb. If the price of A is $0.50, the price of B is $4.00, and the Monica's income is $120.00, how much of good A will she purchase?
A) 0
B) 12
C) 24
D) 48
E) 120
E
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Which of the following transactions would take place in the underground economy?
A) Samuel tells his wife he is going to work but really goes to the local casino. B) Tanisha bought a tablet computer for $269 but decided to sell it to her sister instead of keeping it. C) Laurie buys a case of wine at a liquor store, not realizing that 15% of the purchase price goes to the government as tax revenue. D) Bailey makes beef jerky and sells it at a local flea market for cash to avoid paying taxes.
For a monopsonist in the labor market, the marginal resource cost of labor is:
A. Higher than the wage rate or price of labor B. Less than the wage rate or price of labor C. Equal to the wage rate or price of labor D. Inversely related to the wage rate or price of labor