For good A and good B, the consumer maximizes personal satisfaction when
A. MUAxMUB = PAxPB.
B. MUA/PA = MUB/PB.
C. MUA/PA = PB/MUB.
D. PB/MUA = PA/MUB.
Answer: B
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When deciding on output levels, members of a cartel
A) set their output where MR = MC. B) produce the same level of output as if they were in a competitive market. C) take into account the impact of changes on members' profits. D) act as if they were monopolies.
If the economy is producing a combination of goods inside its production possibilities frontier, then
a. workers are on vacation b. a significant number of workers have little education c. some resources are being wasted d. technology must improve before output can increase e. the opportunity cost of producing more output is greater than the value of the additional output that could be produced
The demand curve of the monopoly firm is always the
a. average revenue curve. b. marginal revenue curve. c. total revenue curve. d. marginal cost curve above average variable cost.
Which procedure seems to be most useful to structure a macroeconomic analysis?
a. (1) Analyze the chain reaction of economic causes and effects; (2) Identify the economic shock; (3) Describe the economic setting in the three key markets. b. (1) Analyze the chain reaction of economic causes and effects; (2) Describe the economic setting in the three key markets; (3) Identify the economic shock. c. (1) Identify the economic shock; (2) Analyze the chain reaction of economic causes and effects; (3) Describe the economic setting in the three key markets. d. (1) Identify the economic shock; (2) Describe the economic setting in the three key markets; (3) Analyze the chain reaction of economic causes and effects. e. (1) Describe the economic setting in the three key markets; (2) Identify the economic shock; (3) Analyze the chain reaction of economic causes and effects.