Cheese is priced at 5 per pound and wine at 10 per bottle. A consumer who enjoys both cheese and ...

Cheese is priced at 5 per pound and wine at 10 per bottle. A consumer who enjoys both cheese and wine will not be in consumer equilibrium until the marginal utility of a pound of cheese is:
 a. four times that of wine.
  b. one-fourth that of wine.
  c. two times that of wine.
  d. one-half that of wine.

QUESTION 2

A monopolist hiring labor in a perfectly competitive resource market is faced with a:
 a. perfectly elastic demand curve for labor.
  b. horizontal marginal factor cost curve.
  c. perfectly inelastic demand curve for labor.
  d. vertical supply curve of labor.
  e. positively sloped marginal factor cost curve.

QUESTION 3

Which of the following statements is true?
 a. Minimum wage creates a labor deficit in a market.
 b. Minimum wage intends to increase the consumer surplus.
 c. Minimum wage is a wage set below the equilibrium wage in order to create more job opportunities.
  d. Minimum wage harms the unskilled workers between the age group 40 and 50.
 e. Minimum wage harms the unskilled workers between the age group 16 and 19.

QUESTION 4

Burritos and margaritas are priced at 3 and 5 each, respectively. If the marginal utility of the last burrito is 15 utils, then, in consumer equilibrium, the marginal utility of the last margarita is:
 a. 15 utils.
  b. 20 utils.
  c. 25 utils.
  d. 30 utils

QUESTION 5

In a perfectly competitive labor market, a profit-maximizing firm that is also perfectly competitive in the product market will:
 a. face a perfectly inelastic supply curve of labor.
  b. pay a wage that is equal to the price of the product.
  c. pay a wage that is equal to the marginal product of labor.
  d. hire more units of labor than would a firm that sells its output in a monopoly market.
  e. pay a wage equal to the marginal factor cost.

QUESTION 6

Which of the following is a possible outcome of a minimum wage imposed by a government?
 a. It leads to an increase in consumer surplus.
 b. It favors women and children and helps improve their standard of living.
  c. It eradicates the problem of unemployment from the market.
 d. It creates a labor surplus or unemployment.
 e. It creates a labor deficit.

QUESTION 7

The price of shrimp is 10.00 per pound and the price of lobster is 15.00 per pound. The marginal utility to Mike of pound of shrimp consumed is 60 utils. If Mike maximizes his satisfaction by consuming both shrimp and lobster, we would expect the marginal utility of the last pound of lobster consumed to equal:
 a. 40 utils
 b. 60 utils
 c. 90 utils
 d. 150 utils

QUESTION 8

A perfectly competitive employer of an input will maximize profits from the employment of the input by equating:
 a. the value of the marginal product of the input with the price of the output.
  b. the marginal product of the last unit of the input employed with the input price.
  c. the input price with the price of the product produced.
  d. the marginal revenue product of the input with the input price.
  e. the marginal product of the last unit of the input employed with the price of the product produced.

QUESTION 9

A wage that allows people to pay for the necessities of life is known as a(n):
 a. equilibrium wage.
  b. minimum wage.
 c. living wage.
 d. fair wage.
 e. subsistence wage.