Which of the following best describes the consumer optimum?
A) MUa/Pa = TUb/Pb
B) MUa/TUa = Pa
C) MUa/Pa = MUb/Pb = . . . = MUz/Pz.
D) change in TU/change in P = MU
Answer: C
You might also like to view...
Bid-rigging is more likely when
a. auctions are for larger amounts b. auctions are infrequent c. auctions are oral d. auctions are sealed-bid
In Lithasia, the marginal propensity to consume is 0.4, base consumption is $2,000 . the tax rate is 30 percent of income, national income is $4,000 . investment spending is $1,000 . government spending is $2,500, export earning is $1,500, and import spending is $3,000 . What is the aggregate expenditure of the economy?
Suppose the Environmental Protection Agency issues pollution permits in order to limit the quantity of pollution. Under this policy, is the supply of pollution rights perfectly elastic or is it perfectly inelastic?
When the money market is drawn with the value of money on the vertical axis, as the price level increases, the value of money
a. increases, so the quantity of money demanded increases. b. increases, so the quantity of money demanded decreases. c. decreases, so the quantity of money demanded decreases. d. decreases, so the quantity of money demanded increases.