If all consumers are perfectly rational according to microeconomic models they should
A. always buy more of the least expensive good.
B. all have the same level of satisfaction.
C. all end up with the same bundle of goods.
D. all have the same marginal rate of substitution.
Answer: D
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In Sweden
A. the government has kept unemployment low by offering industry and workers a series of subsidies and incentives. B. education is free from nursery school through college. C. women may take a year off work after child birth while receiving 80 percent of their pay. D. All of the choices are true.
Reducing the maximum LTV is likely to ________ demand and thus ________ the housing price increase
A) decrease; slow down B) increase; slow down C) decrease; speed up D) increase; speed up
The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When 400 pounds of coffee are produced and consumed in Kaffenia each day, that is
A) more efficient than when 300 pounds are produced and consumed because more is always better than less. B) inefficient because the marginal social benefit exceeds the marginal social cost. C) inefficient because the marginal social cost of the 400th pound exceeds its marginal social benefit. D) inefficient because the opportunity cost of producing more coffee exceeds its marginal social benefit.
What is meant by direct regulation of pollution emissions? What is the problem with this method of pollution control?
What will be an ideal response?