The condition for utility maximization states that the marginal utility per dollar spent on any product must equal the marginal utility per dollar spent on other goods
a. True
b. False
Indicate whether the statement is true or false
True
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A(n) ________ tax is a tax on wages that employers are required to withhold from employees' pay
A) social-insurance tax B) excise tax C) income tax D) value-added tax
Members of a cartel who refrain from selling at prices below the prices established by the cartel will usually
A) continue indefinitely to receive a high net revenue. B) discover other ways to attract additional customers. C) have no incentive to improve the quality of their products. D) not compete against one another. E) want to attract additional firms into the industry to increase the size of the cartel.
It is important to compare debt levels of low- and middle-income countries to exports because countries must earn foreign exchange in order to service their debts
Indicate whether the statement is true or false
The government a new source of revenue from its ownership of natural resources that is likely to be permanent. As a result, the government surprises everyone by cutting taxes. In response, Jeff increases his spending this year by $1000 and next year by $1000, as well. He spreads his increased spending over time because of
A. the substitution effect. B. the consumption-smoothing motive. C. the real interest rate being positive. D. the Phillips curve.