Author Question: When a consumer is consuming at a point where his or her budget line is not as steep as his or her ... (Read 38 times)

tuffie · **on:** Jun 29, 2018

When a consumer is consuming at a point where his or her budget line is not as steep as his or her indifference curve, then he or she should

A) consume more of the good that is measured on the horizontal axis.
B) consume less of the good that is measured on the horizontal axis.
C) not change his or her behavior.
D) consume none of the good that is measured on the horizontal axis.

Question 2

In a labor market, employment

A) and the wage rate are higher when the market is a monopsony than when the market is competitive.
B) is higher and the wage rate is lower when the market is a monopsony than when the market is competitive.
C) is lower and the wage rate is higher when the market is a monopsony than when the market is competitive.
D) and the wage rate are lower when the market is a monopsony than when the market is competitive.