When a consumer spends all of his or her income and consumes a bundle of goods such that the marginal utility per dollar from all goods is equal, then the
A) consumer's total utility is maximized.
B) consumer is in his or her consumption equilibrium.
C) marginal utilities for each good are maximized.
D) Both answers A and B are correct.
D
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If a U.S. citizen buys a dress made in Nepal by a Nepalese firm, then
a. U.S. consumption increases, U.S. net exports decrease, and U.S. GDP decreases. b. U.S. consumption increases, U.S. net exports decrease, and U.S. GDP is unaffected. c. U.S. consumption decreases, U.S. net exports increase, and U.S. GDP increases. d. U.S. consumption decreases, U.S. net exports increase, and U.S. GDP is unaffected.
Comparative advantage is the ability of a country to produce a good at a higher opportunity cost relative to other countries
Indicate whether the statement is true or false
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
The nominal rate of interest tends to rise during time of inflation because
A. lenders require a higher rate in order to loan out money. B. borrowers are willing to pay a higher rate to obtain loans. C. loans are taken in "cheap" dollars but paid back in dollars of greater purchasing power. D. lenders require a higher rate in order to loan out money AND borrowers are willing to pay a higher rate to obtain loans.