In consumer equilibrium:
a. the average utility from each dollar spent is the same
b. total utility cannot be increased by reallocating spending among the goods consumed.
c. total utility obtained from the consumption of each product is at a maximum.
d. the marginal utility from the last unit of each good consumed is the same.
b
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A tariff does not raise any revenue for the government if:
A) imports exceed exports. B) exports exceed imports. C) exports equal imports. D) it reduces imports to zero.
Some nations that seek to produce all of their own needs face the problem that a. they can deplete their natural resources faster as a result
b. some industries are too small to be efficient if restricted to their domestic markets alone. c. the opportunity cost of producing some of their own goods is higher than that of trading with others for them. d. all of the above are true.
In a repeated? game, deterring entry
A) is not possible.
B) is not a rational strategy if money is lost fighting the first potential entrant.
C) may require losing money fighting the first potential entrant.
D) cannot form a subgame perfect Nash equilibrium.
Which of the following is not a negative externality associated with driving cars?
a. congestion b. pollution c. repairs d. accidents