If all goods are essential, a consumer will optimize at an interior solution.

Answer the following statement true (T) or false (F)


True

Rationale: When all goods are essential, no indifference curve crosses any axis --- which means no optimum can ever occur on an axis.

Economics

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A White House proposal to lower business taxes by increasing tax deductions is an example of

A) progressive taxation. B) contractionary fiscal policy. C) automatic stabilization. D) expansionary fiscal policy.

Economics

If Eric expects to earn more income next month, he may choose to a. save more now and spend less of his current income on goods and services. b. save less now and spend more of his current income on goods and services. c. decrease his current demand for goods and services

d. decrease his current demand for goods and services.

Economics

If positive externalities are present in the production of a good, then society will:

a. produce too much of the good since the marginal private benefit to consumers is less than the marginal social benefit. b. produce too little of the good since the marginal private benefit to consumers is greater than the marginal social benefit. c. produce too much of the good since the marginal private benefit to consumers is greater than the marginal social benefit. d. produce too little of the good since the marginal private benefit to consumers is less than the marginal social benefit.

Economics

The business structure that receives some of the benefits of corporations and of partnerships without some of the drawbacks of typical corporation creation is known as a

a. sole proprietorship b. general and limited partnership c. subchapter S corporation d. C corporation e. limited liability corporation or partnership

Economics