If the price of a good increases, a consumer will substitute away from the relatively more expensive good, which will increase the marginal utility for that good and bring the consumer back to equilibrium
Indicate whether the statement is true or false
TRUE
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Marginal benefit and marginal cost must _______ to avoid a deadweight loss.
A. equal B. never equal C. decrease at an increasing rate D. increase at an increasing rate
If the GDP chain price index in a given year is greater than 100, real GDP in that year would be greater than nominal GDP
a. True b. False Indicate whether the statement is true or false
When economic growth occurs it will: a. eventually eliminate scarcity
b. shift the production possibilities curve to the left. c. be a product of luck. d. often result from improved technology.
A downward-sloping demand curve illustrates a. that demand increases
b. that prices fall. c. the relationship between income and demand. d. the law of demand.