Consuming to the point where the marginal utility of each good is equal to the price of that good is consistent with utility maximization
a. True
b. False
B
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If price is less than marginal cost, a profit-maximizing perfectly competitive firm should:
a. increase output. b. decrease output. c. decrease price. d. increase price.
Two variables are independent if as one variable __________, the other variable __________
A) rises; rises. B) falls; falls. C) rises; falls. D) changes; does not change.
When spending by the federal government exceeds net taxes, _____
a. the price level tends to fall b. the money supply must fall c. the aggregate demand curve shifts rightward d. aggregate supply moves rightward e. there is a federal budget surplus
The United States is considered by the Institute for Management Development to be the most competitive economy because
A. of selected restrictions on imports from Japan and Europe. B. of widespread entrepreneurship. C. of a high saving rate. D. U.S. residents are willing to work harder than anyone else is.