Which of the following equations represents consumer equilibrium?
a. MU1/P1 = MU2/P2
b. MU1/P2 = MU2/P1
c. P1/MU1 = P2/MU2
d. P1/MU2 = P2/MU1
a. MU1/P1 = MU2/P2
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If the demand for baseballs falls and all other relevant factors remain unchanged, then,
a. the supply for baseballs will fall. b. the quantity supplied of baseballs will fall. c. the supply for baseballs will rise. d. the quantity supplied of baseballs will rise.
The divergence between money costs and opportunity costs will be greatest in which of the following situations?
A. A university purchases 100 computers. B. A university employs people from town in the cafeteria (the other alternative is to work at a paper mill). C. A university employs otherwise unemployed teenagers to paint crosswalks and curbs. D. A university replaces the roof of the fine arts building.
A current account deficit can occur if ________, all else equal
A) net national savings equals zero B) net factor income from abroad equals zero C) net exports are negative D) net investment income is negative
Which of the following statements is true?
a. The demand for tobacco products tends to be elastic. b. Total revenue is maximized when price elasticity of demand is one. c. Goods are said to be price inelastic when the elasticity is greater than two. d. The demand for milk is more elastic than the demand for luxury travel cruises. e. The demand for 5-cent candy is more elastic than the demand for Irish lace tablecloths.