The price of milk relative to the price of chocolates is higher for consumer A than for consumer B.

The indifference curves of the two consumers cannot cross.

Consumer B dislikes milk more than Consumer A dislikes it

Given the same amount of chocolates, consumer A is willing to swap one bar of chocolate with a smaller amount of milk than consumer B.

The marginal rate of transformation between money and free time when she is working three hours is 60.

If the marginal rate of substitution between hours of free time and money is equal to 10 when she has 21 hours of free time and 60 pounds, she should consume more free time.

She should never consume 7 hours of free time if her indifference curves are downward sloping.

The opportunity cost of the day at the Open is A$40.

You would have paid up to A$100 for the ticket.

The economic rent of the day at the Open is A$10.

The economic cost of the day at the Open is A$40.

Arya should make cloaks; Sansa should make swords.

Both should make cloaks.

Both should make swords.

Arya should make swords; Sansa should make cloaks.

The normal profits made after copying a previous innovation (e.g. once the patent expires)

The profits made by being among the first to adopt a cost-reducing technology.

Subsidies paid to inventors and other innovators by the government to overcome the externality associated with innovation.

The increased land rent that landlords can charge when agricultural productivity increases.

The population initially rises but then falls to the pre-technological shock level.

Income initially rises but then falls to the subsistence level in equilibrium.

Malthus’ Law states that an increase in productivity will result in both increased population and wages in the long run.

There is an immediate and permanent rise in the average product of labour.

When 300 workers are employed, the first 200 workers produce 12.5m each while the next 100 workers produce 11m each.

As the number of workers is increased from 100 to 500, the average product of labour falls by 20%.

The production function exhibits diminishing average product of labour at all levels of labour input.

The average product of labour when the number of workers is 400 is 10 metres.

Markets are the only defining feature of capitalism

Wartime food rationing is an example of a market

In all markets there is competition

Touts selling tickets outside concert halls is a market

When the MRT of work hours into grain output is greater than the MRS of work hours into subsistence requirements, then Bruno should decrease Angela’s free time.

When the MRT of work hours into grain output is lower than the MRS of work hours into subsistence requirements, then Angela’s allocation of grain should be increased.

Angela’s most preferred option is where the MRT equates her MRS.