An rational, optimizing, self interested consumer would consume up to the point where
a. the consumer surplus from the last unit is positive
b. the consumer surplus from the last unit is negative
c. the consumer surplus from the last unit is zero
d. none of the above
c
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The Aldrich-Vreeland Act of 1908 provided for temporary emergency currency for national banks
Indicate whether the statement is true or false
In which of the following economic activities do we commonly find a proprietor acting as a supervisor, a provider of capital, and a residual claimant?
a. A multinational bank b. An oil exploration company c. A small medical store d. An aircraft manufacturer
Summing the value added of all firms yields the value of final goods and services produced because both measures:
A. are adjusted for population growth. B. use constant prices. C. exclude the value of intermediate goods and services. D. exclude the value of capital goods.
Assume the price of Advil increases. As a result, you decrease the quantity of Advil purchased each month and purchase more Tylenol. This is an example of the:
A. income effect. B. utility effect. C. consumption effect. D. substitution effect.