A consumer with a limited income will maximize utility when each good is purchased in amounts such that the
A. marginal utility of each good in a bundle is maximized.
B. total utility is the same for each good in a bundle.
C. marginal utility per dollar spent on each of the final choices in a bundle is equal.
D. marginal utility per dollar spent on each of the final choices in a bundle is maximized for each good.
Answer: C
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Use the following graph to answer the next question.
Which line in the graph would best illustrate the supply of money curve?
A. Line 4 B. Line 3 C. Line 2 D. Line 1
Answer the next question based on the following data. All figures are in billions of dollars.Government purchases$15Consumption90Gross investment20Consumption of fixed capital5Exports8Imports12This nation's GDP is ________.
A. $116 B. $125 C. $150 D. $121
All of the following are associated with the War Industries Board except
a. the negotiation of the prices of key industrial products. b. developing and implementing the bulk line pricing system to determine industrial prices that maximized output. c. the unintended consequence of the "priorities inflation" of contracts. d. establishing and enforcing minimum wages for manufacturing workers.
The formula for calculating the cross price elasticity of demand is: a. the change in the quantity demanded of one good divided by the change in the price of another good
b. the percentage change in demand of one good divided by the percentage change in the price of another good. c. the percentage change in the quantity supplied of one good divided by the percentage change in the price of another good. d. the percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.