When consumers maximize utility, they are equating the ratio of marginal utility to price across all goods consumed.
Answer the following statement true (T) or false (F)
True
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A proposed steel mill will be powered by coal. The country has one company that mines a limited amount of inferior coal, which may not be suitable. In evaluating the potential profit of this mill, how should we determine the price of coal?
What will be an ideal response?
Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates
Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible.
Does a tax on sellers affect the supply curve?
A. Yes, it shifts to the left by the amount of the tax.
B. Yes, it shifts to the right by the amount of the tax.
C. Yes, it shifts up by the amount of the tax.
D. No, there is change in the quantity supplied, but the supply curve does not move.
Equilibrium gross domestic product (GDP) in the short run is determined at the point where
A. gross domestic production equals aggregate demand. B. the rate of unemployment equals zero. C. domestic production equals domestic consumption. D. imports equal exports.