A voluntary production reduction program:
A. offers firms incentives to reduce their production voluntarily.
B. forces firms to reduce their production.
C. offers firms incentives to increase their production voluntarily.
D. forces firms to increase their production.
A. offers firms incentives to reduce their production voluntarily.
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An increase in the price level is defined as
A) a recession. B) a growth boom. C) inflation. D) an expansion.
Due to the law of diminishing marginal utility, _____
a. the first unit of a product offers more satisfaction than the last unit of the same product b. the marginal utility curve is upward sloping c. when marginal utility becomes negative, total utility increases d. marginal utility is zero when total utility is zero e. when marginal utility becomes positive, total utility declines
A utility function is a mathematical function that assigns values to consumption bundles to represent the:
A. consumer's income. B. consumer's preferences. C. marginal rate of substitution. D. prices of the goods in the consumption bundle.
An efficient tax for a product with detrimental externalities would equal
A. marginal social cost minus marginal external cost. B. marginal private cost plus marginal external cost. C. marginal external cost minus marginal private cost. D. marginal social cost minus marginal private cost.