The consumer equilibrium condition for two goods is achieved by equating the:
a. marginal utility of one to the price of the other for the last dollar spent on each good.
b. prices of both goods for the last dollar spent on each good.
c. marginal utilities of both goods for the last dollar spent on each good.
d. ratios of marginal utility to the price of both goods for the last dollar spent on each good.
d
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The medium of exchange is defined as
A) an object that is accepted in return for goods and services. B) the exchange of goods and services directly for goods and services. C) an item that can be stored and hold its value over time. D) credit cards. E) barter.
Which of the following was NOT one of the causes of the Asian financial crises of 1997 and 1998?
A) A current account deficit and financial account surpluses B) The use of exports as an engine of economic growth by the countries involved C) China's 1994 devaluation of its fixed exchange rate D) The appreciation of the U.S. dollar and depreciation of the Japanese yen E) Crony capitalism
The most direct effect of an increase in the growth rate of average labor productivity would be an increase in
A) the inflation rate. B) the unemployment rate. C) the long-run economic growth rate. D) imported goods.
Human capital refers to the:
A. production per capita. B. skills, experience, and natural talent that determine the productivity of workers. C. the machinery and tools that labor can use for production. D. amount of people a firm has access to for production.