If MUx / Px = MUY / PY, then _____
a. the consumer should purchase the same quantity of X and Y
b. the consumer should purchase less of X
c. the consumer is maximizing utility
d. the consumer should purchase more of Y
e. the consumer is minimizing utility
c
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If the economy of Gwondanaland is growing more rapidly than the economy of Japan, most likely
A. Japan has more current investment than Gwondanaland. B. Japan has more government spending than Gwondanaland. C. Japan spends more on capital goods than Gwondanaland. D. Gwondanaland has lower current consumption than Japan. E. Gwondanaland has lower current investment than Japan.
Fill in the blanks to complete the following statements
"Assume a perfectly competitive market is initially in long-run equilibrium. In the short run, a decrease in raw materials prices will cause the firm's average costs to ________. As a result, the profits of existing firms will ________. However, over the long run, this will cause the number of firms in the market to ________, and market price will ________ until firms once again earn a ________."
Crowding out refers to the effect that:
A. C and I are completely unrelated to changes in G. B. C and I are indirectly affected by changes in G. C. C is directly affected by changes in G. D. C and I are directly affected by changes in G.
When making a decision to hire a celebrity endorser, the firms only care about how many people initially try the product.
Answer the following statement true (T) or false (F)