What is consumer equilibrium? How is it achieved?
Please provide the best answer for the statement.
Consumer equilibrium is achieved when the consumer has no incentive to change his expenditure pattern, he has reached his maximum utility for a given set of constraints. This is a achieved when the consumer allocates his money income so the last dollar spent on each product yields the same marginal utility.
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Spending by businesses on things such as machines and buildings which can be used to produce goods and services in the future is
A) investment. B) savings. C) consumption. D) consumption goods.
Which of the following is included as investment in GDP?
i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds A) iii only B) i only C) ii only D) i, ii, and iii E) i and ii
Scarcity requires that we
A) produce efficiently. B) learn to limit our wants. C) have the most rapid economic growth possible. D) have unlimited resources. E) make choices about what goods and services to produce.
A monopoly will usually produce
A) where its demand curve is inelastic. B) where its demand curve is elastic. C) where its demand curve is either elastic or inelastic. D) only when its demand curve is perfectly inelastic.