A consumer is maximizing utility when
A) the slope of the budget constraint has reached -1.
B) diminishing marginal utility has set in.
C) the slope of the budget constraint equals the marginal rate of substitution.
D) the consumer has spent all of his income.
Answer: C
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All of the following are social insurance programs designed to attack poverty EXCEPT
A) Social Security. B) temporary assistance to needy families. C) food stamps. D) tuition assistance.
Three landscapers, Allen, Betty, and Christina, are visiting the lawn and garden supply store. Allen is choosing between a mower with a 40-inch blade and a mower with a 28- inch blade. Betty is picking up her mower, which was in for scheduled maintenance. Christina is putting up a For Sale sign advertising her equipment and list of customers. Who is operating in the long run?
a. Allen and Christina b. Betty and Christina c. Allen only d. Betty only e. Christina only
Suppose Canada can produce 100,000 hockey sticks or 10,000 gallons of maple syrup in a week, while Germany can produce 90,000 hockey sticks or 10,000 gallons of maple syrup in a week. Which of the following conclusions is likely to be made? a. Canada has a comparative advantage in the production of hockey sticks. b. Germany has a comparative advantage in the production of hockey sticks. c
Canada has an absolute advantage in the production of maple syrup. d. Germany has an absolute advantage in the production of maple syrup.
Which of the following would not affect an individual's demand curve?
a. expectations
b. income
c. prices of related goods
d. the number of buyers