According to utility theory, a consumer is in equilibrium when:
a. total income is spent.
b. marginal utility per dollar spent for a good is maximized.
c. total utility per unit of a good is maximized.
d. total utility per dollar spent is equal for all goods.
e. marginal utility per dollar spent is equal for all goods.
e
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Structural unemployment is:
A. short-term unemployment that is associated with the process of matching workers with jobs. B. the extra unemployment that occurs during periods of recession. C. long-term and chronic unemployment that exists even when the economy is producing at a normal rate. D. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers.
Automatic stabilizers are provisions in the law which create automatic ________ in government spending or ________ in taxes when real output declines.
A. decreases; decreases B. increases; increases C. increases; decreases D. no change; no change
If the population is split up into quintiles by income, the bottom quintile would include:
A. the poorest half of the population. B. the poorest 60 percent of the population. C. the richest half of the population. D. the poorest 20 percent of the population.
What is the "most favored nation" principle of the WTO?
a. Trading partners may choose a favorite nation to trade with. b. Any nation can refuse to trade with another that is not its most favored nation. c. The WTO has the right to choose the nation that has performed best within the WTO guidelines as its most favored nation. d. Every nation must grant the same rights and treatment to other nations in the WTO as its "most favored nation."