The condition required for a consumer to be maximizing utility, for any pair of products, X and Y, is
A) MUX = MUY.
B) MUX/PY = MUY/PX.
C) PX = PY.
D) PX(MUX) = PY(MUY).
E) MUX/PX = MUY/PY.
Ans: E) MUX/PX = MUY/PY.
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Which of the following would cause a rightward shift in the AD curve?
A) an increase in the price level B) a decrease in the price level C) an increase in imports D) a decrease in the quantity of money available in the economy E) an increase in government purchases of goods and services
Keynesians
A. believe capitalism is inherently stable. B. believe the markets in a capitalistic economy are highly competitive. C. argue against the use of discretionary monetary policy. D. contend that government intervention in the economy is desirable.
The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, what is true?
A) The lowest wage for which someone is willing to work is $18 an hour. B) The quantity of jobs increases to 400. C) The lowest wage for which someone is willing to work is $20 an hour. D) 200 workers are employed. E) The quantity of jobs demanded is more than the quantity supplied.