If all income is consumed in a year, then
A) income next year will increase.
B) investment spending will be zero.
C) any investment spending will be done by the government.
D) investment spending will increase.
B
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It is efficient to produce an additional shirt if the
A) marginal social benefit of producing the shirt is greater than zero. B) marginal social benefit of producing the shirt is zero. C) marginal social benefit of producing the shirt is greater than the marginal social cost of producing it. D) total social benefit from producing shirts is maximized.
If Px = Py, then when the consumer maximizes utility,
A) X must equal Y. B) MU(X) must equal MU(Y). C) MU(X) may equal MU(Y), but it is not necessarily so. D) X and Y must be substitutes.
If workers are changing jobs voluntarily and it takes a while for them to find new jobs, they are an example of
a. structural unemployment. b. frictional unemployment. c. technological unemployment. d. None of these.
The rate at which one currency is traded for another is called a(n)
a. prime rate. b. trade rate. c. exchange rate. d. money rate.