The consumer is in equilibrium when
A) MRT = MRS.
B) Px/Py = MUx/MUy
C) the budget line is tangent to the indifference curve at the bundle chosen.
D) All of the above.
D
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A movement along the consumption function shows the change in consumption expenditure as a result of a change in
A) disposable income. B) the interest rate. C) net taxes. D) the price level. E) saving.
Which of the following financial intermediaries is NOT a depository institution?
A) a savings and loan association B) a commercial bank C) a credit union D) a finance company
When the budget line for two goods is just tangent to the highest achievable indifference curve, then _____
a. the consumer is in equilibrium b. the consumer should purchase more of the good represented on the horizontal axis c. the consumer should purchase more of the good represented on the vertical axis d. the consumer cannot afford the combination represented by the tangency point e. the consumer should purchase less of both goods
Employment tends to fall when aggregate output falls.
Answer the following statement true (T) or false (F)