Consumers usually buy fewer units of a good than the quantity that would maximize total utility from consuming the good because
A. marginal utility becomes zero after just a few units of the good.
B. they are not rational.
C. of the law of demand.
D. they have limited incomes.
Answer: D
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If the exchange rate rises as shown by the arrow in the figure above, the price of imports coming into the United States will be ________, Americans will supply ________ dollars in order to get the foreign exchange to purchase ________ imported goods
. A) higher; more; more B) lower; more; more C) lower; fewer; more D) lower; fewer; fewer E) higher; fewer; more The figure above shows supply curves of dollars in the foreign exchange market.
When the price of oil rises unexpectedly, the equilibrium price level ________ and the unemployment rate ________ in the short run
A) rises; falls B) falls; rises C) falls; falls D) rises; rises
If a firm is operating at the point of tangency between an isoquant and an isocost line, its production is:
A. both technically and economically inefficient. B. technically efficient but economically inefficient. C. both technically and economically efficient. D. technically inefficient but economically efficient.
Double taxation of saving may
A. increase the rate of investment. B. increase the rate of economic growth. C. increase the budget deficit. D. reduce the saving rate.