When a person consumes two goods (A and B), that person's utility is maximized when the budget is allocated such that:
A) the marginal utility of A equals the marginal utility of B.
B) the marginal utility of A times the price of A equals the marginal utility of B times the price of B
C) the ratio of total utility of A to the price of A equals the ratio of the marginal utility of B to the price of A.
D) the ratio of the marginal utility of A to the price of A equals the ratio of the marginal utility of B to the price of B.
D
You might also like to view...
Countries with small amounts of capital per worker tend to have ________ levels of real GDP per person and ________ levels of average labor productivity.
A. high; high B. low; average C. low; low D. high; low
Assuming an economy is already experiencing full employment, then it must produce more consumer goods and fewer capital goods if it wishes to experience greater rates of economic growth over time
a. True b. False Indicate whether the statement is true or false
Figure 11-9
In Figure 11-9, which of the following is true?
a.
MC = P
b.
MC = MR
c.
MU > MR
d.
MU < MC
The foreign purchases effect suggests that a decrease in the American price level relative to those in other countries will _____ American exports and _____ American imports.
Fill in the blank(s) with the appropriate word(s).