Consumers maximize total utility within their budget constraint by
A) spending the same dollar amount for each good.
B) buying the cheapest goods they can find.
C) buying whatever they like the best.
D) buying the goods with the largest marginal utility per dollar spent.
D
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Scarcity is
A) a situation of shortage after a hurricane. B) a permanent human condition relative to the nearly limitless nature of human desires. C) represented by long lines at stores. D) the same thing as poverty.
The most unequal distribution of income in the above figure exists in
A) country 4. B) country 1. C) country 5. D) country 3.
In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Foreign exchange market, with a shift in the supply of domestic currency b. Foreign exchange market, with a shift in the demand for domestic currency c. Real goods market with, a shift in aggregate supply d. Real goods market with, a shift in aggregate demand e. Real loanable funds market, with a shift in the supply of real loanable funds
At the start of the year, your firm's capital stock equaled $10 million, and at the end of the year it equaled $15 million. The average depreciation rate on your capital stock is 20%. Net investment during the year equaled
A. $3 million. B. $5 million. C. $4 million. D. $7 million.