The utility-maximization condition for two goods is achieved by equating the:
a. prices of both goods
b. marginal utilities of both goods
c. ratios of total utility to price of both goods
d. ratios of marginal utility to price of both goods
d. ratios of marginal utility to price of both goods
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President George W. Bush used part of the budget surplus inherited from the Clinton administration to
A) stimulate the economy that was slowing down following the end of the high-tech investment boom. B) fund tax cuts. C) increase government entitlement spending. D) both A and B.
If an Atlanta bakery raises the price of their rye bread by 11 percent and the quantity demanded decreases by 11 percent, then the demand for the rye bread is ________ and the bakery's total revenue ________
A) unit elastic; does not change B) unit elastic; increases C) unit elastic; decreases D) elastic; does not change E) inelastic; does not change
Economic profit equals
A) NOPAT less capital charges. B) NOPAT plus capital charges. C) NOPAT plus interest payments on bonds. D) NOPAT minus accounting profit.
The higher the riskiness associated with a particular job, the more the pay offered to a worker
a. True b. False Indicate whether the statement is true or false