A consumer maximizes utility when she consumes at a point where
a. the marginal utility of each good is the same
b. the marginal utility per dollar spent on each good is the same.
c. the price of each good is the same.
d. All of the above statements are true.
b
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When they first appeared in the U.S., corporations did not have all the advantages that they have today. For example, early corporations:
a. had to be re-chartered upon the death of a shareholder. b. were taxed at a higher rate than sole proprietorships and partnerships. c. did not have the legal protection of limited liability. d. were not allowed to have more than 12 shareholders. e. All of the above.
The law of diminishing marginal utility states that as you consume more and more of a good, other things constant,
a. total utility eventually rises b. marginal utility can become positive c. marginal utility approaches, but never becomes, zero d. total utility can never become negative e. marginal utility eventually declines
Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in: a. real GDP
b. the price level (CPI). c. the unemployment rate. d. a and b, but not c.
To fight inflation, the government may
a. decrease aggregate demand, which will also lead to lower unemployment rates. b. increase aggregate demand, which will also lead to lower unemployment rates. c. increase aggregate demand, which will also lead to higher unemployment rates. d. decrease aggregate demand, which will also lead to higher unemployment rates.