Which of the following statements about the optimal solution to the consumer problem based on the Cobb-Douglas utility function is NOT true?
A) The cross-price elasticities of demand are zero.
B) Both goods have downward sloping demand curves.
C) Both goods are normal goods.
D) The marginal utility of income may be negative.
D
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A price taker is a buyer or seller who:
A. has complete control over setting the market price. B. can influence the market price. C. has no control over setting the market price. D. has the goal of maximizing market share, not profits.
When a person who receives welfare benefits earns income, those benefits are reduced as earned income rises. This is referred to as
a. an implicit marginal tax. b. the opportunity cost of income. c. the work-leisure trade-off. d. reverse discrimination.
Data on output and planned aggregate expenditure in Macroland are given below.Output (Y)Planned Aggregate Expenditure (PAE)2,0002,3003,0003,2004,0004,1005,0005,0006,0005,900 Based on these data, the short-run equilibrium level of output is:
A. 4,100. B. 5,000. C. 3,200. D. 2,000.
The Sherman Act of 1890:
A. made it illegal to engage in practices that resulted in restraint of trade. B. outlawed tying contracts. C. outlawed stock-purchase mergers that would substantially reduce competition. D. prohibited selling products at "unreasonably low prices" with the intent of reducing competition.