If macaroni and cheese is an inferior good, then
a. the income effect and the substitution effect work in opposite directions
b. as the budget line shifts to the right, consumers demand more macaroni and cheese
c. when the price of macaroni and cheese rises, the quantity demanded also rises
d. the quantity demanded rises as purchasing power rises
e. individuals will not consume macaroni and cheese
A
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If firms are competitive and profit maximizing, the price of a good equals the
a. marginal cost of production. b. fixed cost of production. c. total cost of production. d. average total cost of production.
Specializing and participating in international trade allows and economy to:
a. divert high-skilled resources toward low-valued services b. circumvent the output limits imposed by its own production possibilities curve c. get more of a desired good by sacrificing greater amounts of some other good d. increase the quantities of capital and consumer goods available to society
Total utility may be determined by:
A. multiplying the marginal utility of the last unit consumed by the number of units consumed. B. summing the marginal utilities of each unit consumed. C. multiplying the marginal utility of the last unit consumed by product price. D. multiplying the marginal utility of the first unit consumed by the number of units consumed.
“Political logrolling solves the problem of inefficient outcomes in the provision of public goods.” Evaluate
Please provide the best answer for the statement.