What are the two conditions that are met if a consumer is maximizing utility?
What will be an ideal response?
There are two conditions: (1 ) The consumer spends all his or her income. (2 ) The consumer equalizes the marginal utility per dollar from all goods.
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Which of the following is FALSE about public-sector decision making?
A) Decisions are based on majority rule. B) The price charged to consumers is often less than its full opportunity cost. C) Decisions involve no opportunity cost. D) Incentives play a role in decision making.
When a monopolist is able to sell its product at different prices, it is engaging in
a. distribution pricing. b. quality-adjusted pricing. c. arbitrage. d. price discrimination.
The mergers between Sony and Columbia Pictures and between MCA and Matsushita are ________ mergers.
Fill in the blank(s) with the appropriate word(s).
If the central prediction of the Solow Growth Model is valid,
A. per capita Real GDP differences among nations will diminish. B. per capita Real GDP differences among nations will increase. C. population growth rates in rich countries will increase. D. economic freedom as measured by the Heritage Foundation Index will decrease.