When the price of gasoline rises by 40 percent, but your salary remains the same, it is an example of a decline in your:
a. standard of living
b. purchasing power
c. GDP index
d. cost of living index
e. gross economic income
Ans: b. purchasing power
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Education
A) does not really add to one's human capital. B) does not really affect one's income. C) is a major factor affecting one's income. D) explains all the differences in male-female incomes.
If a firm equates MR and MC, then:
a. TR is at a maximum, and TC is at a minimum. b. output is at a maximum. c. losses are at a maximum. d. profits are at a maximum or losses are at a minimum. e. both TR and TC are at a maximum.
Refer to the inequality below. The marginal utility per dollar spent on good X is less than the marginal utility per dollar spent on good Y. According to the rule of equal marginal utility per dollar spent, what can a consumer do to increase total utility from consumption of goods X and Y?
In principle, can a monopolist hold its monopoly power in the long run? Explain
What will be an ideal response?