The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the
A) law of increasing costs.
B) law of diminishing marginal utility.
C) rule of 72.
D) consumer optimum.
Answer: D
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Refer to the figure above. In free trade A will import
A) 700 units from country C. B) 700 units from C and 600 units from B. C) 600 units from C. D) 600 units from C and 400 units from B.
Which of the following does NOT represent a possible shape of the long-run average cost curve?
A) downward sloping B) upward sloping C) U-shaped D) vertical
Which of the following is a recommended strategy to increase productivity of the private sector?
a. A reduction in government subsidies to producers b. An increase in business taxes c. An increase in government investment in risky projects d. An increase in the money supply e. An increase in subsidy on goods and services
Which of the following is not consistent with the ethics underlying the wage rate determined in a perfectly competitive labor market?
a. wage rate differentials between women and men, and between white and minority workers b. workers should receive their MRP c. noncompeting labor markets d. competing labor markets e. wage rate differentials between workers with different abilities and talents