If a consumer spends all of his or her income and the marginal utility per dollar is equal for all goods, then
A) marginal utility is maximized.
B) total utility is maximized.
C) a consumer could not be better off even with greater income.
D) the proportion of income spent on each good must be equal.
B
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How can governments intervene in trade?
A) by not buying products from competing countries B) by helping reduce economic uncertainty C) by producing cheaper products D) all of the above
If 10 firms share the sales of the market equally, the four-firm concentration ratio is ________ percent
A) 100 B) 40 C) 10 D) 5
An allocation of resources is Pareto efficient if it is:
A. possible to make at least one consumer better off without making someone else worse off. B. possible to make all consumers better off. C. impossible to make any consumer better off without making someone else worse off. D. impossible to make any consumer better off without making everyone worse off.
Putting quarters into a Las Vegas slot machine and receiving quarters out of that machine is analogous to
a. the gross domestic product b. aggregate demand c. aggregate supply d. consumption e. the circular flow of money through firms and households