Which of the following statements is true when the consumer is in utility-maximizing equilibrium?
A) The number of units of each good purchased is equal.
B) The prices of the goods in question must be equal.
C) The total benefits the consumer receives from every good consumed must be the same for all goods.
D) The rate at which the consumer is willing to trade one good for another is equal to the ratio of their market prices.
D
You might also like to view...
Consider a good whose consumption takes place publicly. Your decision to buy that good depends
A) both on the characteristics of the product and on how many other people are buying the good. B) only on the price of the good. C) only on how many other people buy the good. D) only on the characteristics of the good.
All of the following are automatic fiscal stabilizers EXCEPT
A) a congressionally mandated decrease in tax rates to stimulate the economy. B) a decrease in unemployment compensation payments during an expansion. C) a decrease in overall tax revenues during a recession. D) an increase in unemployment expenditures during a recession.
If the government wishes to increase GDP by $1,200b, and the MPC is 0.8, it should:
A. increase its spending by $960b. B. increase its spending by $240b. C. decrease its spending by $240b. D. decrease its spending by $960b.
The feedback effect can be thought of as a type of
A) social regulation. B) economic regulation. C) creative response. D) regulatory lag.