The additional benefit to a consumer from consuming one more unit of a good or service
A) is equal to economic surplus.
B) is equal to marginal benefit.
C) is equal to the opportunity cost of consuming the good or service.
D) is equal to consumer surplus.
B
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In the saving function, autonomous saving is
A) -a + (1 - c)(Y - T). B) (1 - c)Y. C) -a. D) -Y - T.
A Giffen good
A) is always the same as an inferior good. B) is the special subset of inferior goods in which the substitution effect dominates the income effect. C) is the special subset of inferior goods in which the income effect dominates the substitution effect. D) must have a downward sloping demand curve.
If the income elasticity of demand for good A was 3.9 and the income elasticity of demand for B was 0.2: a. Both good A and good B are normal
b. Both good A and good B are inferior. c. Good A is normal and good B is inferior. d. Good A is inferior and good B is normal.
Which would most likely increase aggregate supply?
a. An increase in productivity b. An increase in the prices of imported products c. A decrease in net exports d. A decrease in business subsidies