A consumer chooses an optimal consumption point where the
a. marginal rate of substitution is maximized.
b. slope of the indifference curve exceeds the slope of the budget constraint by the greatest amount.
c. ratio of the marginal utilities equals the ratio of the prices.
d. All of the above are correct.
c
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Reformulated gasoline
a. refers specifically to ethanol (10) b. includes enhanced oxygen to enhance combustion c. refers to formulations that release less hydrocarbons, toxics, and CO than conventional gasoline d. includes large amounts of MTBE
In contrast to a perfectly competitive firm, a monopolist operates in the long run at a quantity of output at which:
a. P = MC. b. MR = MC. c. P = ATC. d. P > MR.
What assumptions are necessary to argue that the quantity equation implies that increases in the money supply lead to proportional changes in the price level?
An increase in the U.S. trade deficit could be caused by
A. A depreciation of the dollar. B. The imposition of a tariff on imported goods. C. An appreciation of the dollar. D. An increase in the rate of inflation in other countries.