An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?
A) MRSxy is at a maximum.
B) Px/Py = money income.
C) MRSxy = money income.
D) MRSxy = Px/Py.
E) all of the above
D
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The short-run aggregate supply curve is most likely to shift to the right if ________.
A. productivity decreases B. input prices decrease C. wages increase D. sales taxes increase
For a competitive market,
a. a seller can always increase her profit by raising the price of her product. b. if a seller charges more than the going price, buyers will go elsewhere to make their purchases. c. a seller often charges less than the going price to increase sales and profit. d. a single buyer can influence the price of the product but only when purchasing from several sellers in a short period of time.
What is the relationship between education and human capital?
Policy makers who listen to the academic economists from whom they ask advice:
A. never privately agree with the economists' policy recommendations. B. do not always follow the economists' policy recommendations. C. always follow the economists' policy recommendations. D. realize that the best way to get elected and reelected is to say constantly that all choices have costs and benefits.