A consumer is buying the optimal amount of goods when
A. the marginal utility from the purchases of all the goods purchased is the same.
B. the total utility from the purchases on all the goods purchased is the same.
C. the marginal utility from the purchases of all the goods is equal to 1.
D. the marginal utility per last dollar spent on all of the goods purchased is the same.
Answer: D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
In third-degree price discrimination, markets with a larger price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a smaller price elasticity of demand.
A) less; lower B) more; higher C) more; lower D) less; higher
Perishable goods such as tomatoes and milk are never used as a form of money, primarily because they cannot function as:
a. a store of purchasing power. b. a means of payment. c. a standard of deferred payment. d. a medium of exchange. e. a unit of account.
Which statement about the Federal Reserve Board of Governors is true?
a. The members of the Board of Governors are appointed every four years. b. The chair of the Board of Governors is usually a career politician. c. Members are appointed by the president with Senate approval. d. Members are democratically selected by the 12 banks that make up the Fed.