If MUx/Px > MUy/Py, then
A. X is more expensive than Y.
B. Y is more expensive than X.
C. spending a dollar less on X and a dollar more on Y increases utility.
D. spending a dollar less on Y and a dollar more on X increases utility.
Answer: D
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Tariff rates remained high after the Civil War because government revenue needs were pressing and there were protectionist sentiments
Indicate whether the statement is true or false
Network effects on the Internet:
A. help firms like Google and Facebook dominate their respective markets. B. allow many firms to operate, making Internet markets highly competitive. C. cause economies of scale to be exhausted quickly. D. create a level playing field for all types of media, communication, and commerce on the Internet.
The price elasticity of demand for color printers is 1.6 and you would like to see the quantity demanded for color printers to increase by 32%. Then the percentage change in price should be:
A. 10%. B. 15%. C. 20%. D. 25%.
When the price of a good increases, the budget constraint shifts in parallel to the original budget constraint.
Answer the following statement true (T) or false (F)