By saying that MRS = MRT, an economist means that
A) for all goods, the value that society places on the last unit produced equals the cost of making that unit.
B) for all goods, the value that a consumer places on the last unit consumed equals the value that all consumers would place on that unit.
C) society is able to produce more output of one good without reducing the output of any other good.
D) no other output mix is technically feasible.
A
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In the long run, a firm might experience rising average total costs due to
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing marginal returns.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Price index falls, and real GDP rises. b. Price index falls, and real GDP falls. c. Price index falls, and the change in real GDP is uncertain. d. The change in price index is uncertain, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.
When a consumer has chosen an optimal bundle of goods, this bundle maximizes marginal utility.
Answer the following statement true (T) or false (F)
An increase in labor force participation will increase output and living standards at the cost of
a. higher taxes b. higher interest rates c. longer work weeks d. foregone leisure time e. higher exports