Exam 4: Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

The time constraint for the consumer is

An increase in real dividend income minus taxes represents

Convexity of the indifference curve follows from

A utility function

A production function describes the

In macroeconomic analysis, the representative consumer

At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to

An economy without monetary exchange is called

When consumption and leisure are both normal goods, an increase in real dividend income minus taxation, the rational consumer

The representative consumer acts competitively

The Solow residual is a measure of

In the goal of consumer optimization, it is assumed that

In a one-period economy

A dynamic decision is one that

"More is always preferred to less" refers to

For macroeconomic purposes, it is assumed that all consumers in the economy

Of the following, which is the least likely example of an increase in total factor productivity?

In a typical aggregate production function, total factor productivity denotes the quantity of aggregate output that we cannot explain solely by the contributions of the labour and capital inputs. a)In reality, what explains total factor productivity and its movements over time? b)Discuss the problems we might face in trying to measure the factors contributing to changes in productivity over time.

The optimal consumption bundle is the point representing a consumption-leisure pair that is on the

We assume that the representative consumer's preferences exhibit the properties that