A consumer maximizes her total utility from a bundle of goods when her marginal utility from each good is equal
Indicate whether the statement is true or false
FALSE
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What are the effects of a minimum wage set below the equilibrium wage?
What will be an ideal response?
Which of the following is a short-run adjustment?
a. Toyota builds an automobile plant in Kentucky. b. Faced with increasing enrollment, a private college builds a new School of Business building. c. Because of staggering losses, three insurance companies exit the industry. d. People's Bank hires two new tellers to meet increased demand for customer services. e. Shaveco enters the razor blade market with a new product, produced in the United States.
Which of the following is not "means-tested"?
a. Temporary Assistance for Needy Families (TANF) b. welfare programs c. the Food Stamp program d. Social Security payments to a retiree e. free and reduced price school lunches for the poor
If nominal gross domestic product fell while real gross domestic product rose, which of the following must be true?
a) unemployment increased b) the inflation rate was negative c) net exports were negative d) the average of stock prices rose while bond prices fell e) nominal interest rates by less than the rate of inflation