Which of the following leads a perfectly competitive market to become allocatively efficient?
a. P = MC
b. P = MR
c. P = MR + MC
d. P = MR - MC
a. P = MC
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What would happen to the budget line if income increases by the same percentage as the price of the two goods decreases (that is income up by, say, 10 percent and the prices down by 10 percent)?
A. A rightward parallel shift in the budget line B. A leftward parallel shift in the budget line C. An upward pivot of the budget line D. The budget line is unaffected
Which of the following has been a significant factor in the ability of iPads to compete effectively against laptop and desktop computers?
A. iPads are often superior to laptop and desktop computers in their ability to create content. B. A scarcity of production capacity has curtailed the manufacture of laptop and desktop computers. C. Many consumers perceive that iPads are superior to laptops and desktop computers for the consumption of digital media. D. The prices of laptops and desktop computers have increased dramatically.
When you purchase the lower-priced store brand bread instead of the more expensive name brand, you are experiencing
A. a fall in total utility. B. diminishing marginal product. C. the income effect. D. the substitution effect.
A Gini coefficient of zero means that
A. the income is equally distributed. B. one person has all the income and everyone else has nothing. C. the income is split equally between the top 20% and the rest of the distribution. D. all the income is received by the top 20% of families.