Pencils sell for 10 cents and pens sell for 50 cents. Suppose Jack, whose preferences satisfy all of the basic assumptions, buys 5 pens and one pencil each semester. With this consumption bundle, his MRS is 3, assuming pencils are on the y-axis and pens are on the x-axis. Which of the following is true?

Which of the following moves represents the income effect of the price change?

You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour. Three employees can generate an average product of 4 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. What is the marginal product of labor as you increase the labor from three to five employees?

The figure below depicts a consumer’s indifference curves. U0 represents the lowest utility level and U2 represents the highest utility level. It can be inferred that:

You are currently using three printing presses (capital) and five employees (labor) to print 100 sales manuals per hour. Suppose the marginal rate of technical substitution at this point is 0.5 (capital is on the vertical axis and labor is on the horizontal axis of the isoquant map). If you were to purchase another printing press, by how much could you reduce the number of employees you hire (i.e., how many units of labor would you be willing to sacrifice) while still maintaining output?

Consider the market for cream cheese. Suppose the price of bagels (a complement to cream cheese) falls. Simultaneously, the price of milk (an input into cream cheese) falls. What would you predict will happen to the equilibrium price of cream cheese? To the equilibrium quantity of cream cheese? Explain and draw diagrams to support your answer.  Leave the field below blank. Score will be based on the photo / pdf of your work.

Typical indifference curves slope down because of

A firm’s marginal product of labor is 4 and its marginal product of capital is 5. If the firm adds one unit of labor, by how much could it reduce its use of capital without affecting output?

Assume that food is measured on the horizontal axis and clothing on the vertical axis. If the price of food falls relative to that of clothing, the budget line will:

The client has had a stroke that has affected the ability to speak. The client becomes extremely frustrated when trying to speak. The client responds correctly to questions and instructions but cannot form words coherently. Which type of aphasia is the client experiencing?