Which of the following occurs when a consumer equilibrium has been achieved?
a. The marginal utility of the last unit purchased is identical for all goods
b. The price of the last unit purchased is identical for all goods.
c. An equal amount of income is spent on all goods purchased.
d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.
d
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When a union successfully raises the wages of its members, it will also
a. increase total productivity, which must rise in proportion to the wage rate. b. encourage employers to find a substitute for the union labor. c. raise the wages of nonunion workers. d. increase the share of income allocated to labor as opposed to capital.
A constant-cost industry is one in which
A. the long-run supply curve is upward sloping. B. the long-run supply curve is perfectly inelastic. C. the long-run supply curve is downward sloping. D. the long-run supply curve is perfectly elastic.
Assume the demand function for good X can be written as Qd = 80 - 3Px - 6Py + 10I, where Px = the price of X, Py is the price of Y and I is consumer income
If the price of Y decreases by 5 dollars, what would the reduction in Px have to be in order to keep the quantity demanded of X unchanged by the change in the price of Y? A) decreased by 10 dollars B) decreased by 5 dollars C) decreased by 2.5 dollars D) decreased by 1 dollar
A man-made resource such as a building or a machine is an example of which resource?
A) entrepreneurial ability B) labor C) physical capital D) human capital