The MU/P equalization principle means consumers will exhaust their expenditure budget so that, in the end, the MU/P ratio is:
a. zero for each good.
b. higher for goods the consumer wants the most.
c. maximized for the goods the consumer wants the most.
d. higher than TU/P.
e. the same for each good.
e
You might also like to view...
In a steady state
A) both consumption per worker and the capital—labor ratio are constant. B) consumption per worker is constant, but the capital—labor ratio can change. C) capital and labor, by definition, are inversely related to one another. D) consumption per worker can change, but the capital—labor ratio is constant.
The Interstate Highway system in the U.S. has boosted economic productivity mainly through ________
A) the positive impact on tourism B) reduction in transportation costs C) increased competition among fast food restaurants D) increased speed of military deployments
Refer to the above figure. Demand will be inelastic when quantity is between
A) 0 and A. B) 0 and B. C) A and B. D) B and C.
Suppose Fred's marginal utility of an extra dollar of income is 56, and Sally's is 34 . If a dollar is taken from
a. Sally and given to Fred, the economy's total utility will rise by 22 units b. Fred and given to Sally, the economy's total utility will rise by 22 units c. Sally and given to Fred, the economy's total utility will rise by 34 units d. Sally and given to Fred, the economy's total utility will rise by 56 units e. Fred and given to Sally, the economy's total utility will rise by 34 units