If a consumer is maximizing utility and then the price of Good A increases:
a. the marginal utility from the consumption of Good A will fall
b. the marginal utility from the consumption of Good A will remain unchanged.
c. the marginal utility per dollar spent on Good A will decrease.
d. consumption of Good A will increase.
c
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Market income in the United States is distributed
A) more unequally than income after taxes and benefits. B) less unequally than income after taxes and benefits. C) the same as income after taxes and benefits. D) according to a big tradeoff between equity and equality
In the simplest Keynesian expenditure model, which of the following is fixed to allow for easy evaluation of changes in demand due to real income?
a. the price level b. interest rates c. tastes and preferences d. future expectations
With eight hours of work Elmer can produce 20 pounds of carrots or 15 pounds of peas. With eight hours Bugs can produce 10 pounds of carrots or 7.5 pounds of peas. Can Elmer and Bugs gain from trade? Defend your answer
The production possibility curve:
A. is based on the law of diminishing returns. B. is convex to the origin. C. is the boundary between attainable and unattainable outputs. D. reflects the mixed economy found with most economic systems.