At the consumer's optimum
a. the budget constraint will have a slope of MUx/Px.
b. it is still possible for the consumer to increase his consumption of both goods.
c. the indifference curve will intersect the budget constraint at the midpoint of the budget constraint.
d. the slope of the indifference curve is equal to the slope of the budget constraint.
d
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In the figure above, the DLF curve is the demand for loanable funds curve and the PDLF curve is the private demand for loanable funds curve. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget
A) deficit of $1 trillion. B) deficit of $1.5 trillion. C) surplus of $0.5 trillion. D) deficit of $0.5 trillion. E) surplus of $1 trillion.
Owners of a corporation share in the profits of the firm
A) through dividend payments on shares of that firm's stock. B) by raising the interest rate on bonds. C) through coupon payments on that firm's bonds. D) by selling any bonds or stocks owned and realizing a capital gain.
XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than one. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?
A key causal link in the interest-rate-based transmission mechanism for monetary policy is from
A) investment to the interest rate. B) the money supply to excess reserves. C) a monetary policy action to excess reserves. D) real GDP to investment.