Which of the following properties hold true for the equilibrium price-quantity combination?
a. Buyers who are willing to pay higher than the equilibrium price do not find sellers.
b. At the equilibrium price producer surplus equals consumer surplus.
c. The equilibrium output is produced at the lowest avoidable cost.
d. The equilibrium output is produced at the lowest opportunity cost.
C
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Rembrandt paintings are expensive and not as vital for life as milk, which is cheap
Marginal utility theory explains this paradox of value: The total utility from a Rembrandt painting is ________ than the total utility from milk, and the marginal utility from a Rembrandt painting is ________ than the marginal utility from milk. A) smaller; smaller B) smaller; larger C) larger; smaller D) larger; larger
The five most important variables that determine the level of consumption are
A) disposable income, wealth, expected future income, price level, and interest rate. B) wealth, savings account balances, checking account balances, stock portfolio balances, and bond portfolio balances. C) government purchases, saving account balances, wealth, interest rates, portfolio balances. D) government purchases, interest rates, income, taxes, and transfers.
A stock market boom which causes stock prices to rise should cause
A) a decrease in consumption spending. B) a decrease in wealth. C) an increase in consumption spending. D) a decrease in net export spending.
The overall productivity crisis of the 1970s can be attributed, in part, to insufficient investment in research and development
Indicate whether the statement is true or false