In a competitive marketplace, prices adjust until
A) MRS's are equal to zero.
B) excess supply equals excess demand equals zero in all markets.
C) each consumer has maximized utility subject to his budget constraint.
D) all firms earn zero profit.
B
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For a fixed inflation rate target, an increase in the inflation rate corresponds to a ________ the aggregate demand curve and an increase in exogenous spending corresponds to a ________ the aggregate demand curve.
A. movement up; shift right of B. shift left of; shift right of C. shift left of; movement up D. movement up; movement down
The marginal social cost curve is downward sloping under variable technology
a. True b. False
Exclusive rights of ownership that allow the use, transfer, and exchange of property are called
A. common property rights. B. public property rights. C. nonexclusive property rights. D. private property rights.
For a perfectly competitive industry, an improvement in technology will cause
A. the industry short-run supply curve to shift to the right. B. a movement down the short-run industry supply curve. C. a movement up the short-run industry supply curve. D. the industry short-run supply curve to shift to the left.