The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the
A. law of increasing costs.
B. consumer optimum.
C. rule of 72.
D. law of diminishing marginal utility.
Answer: B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Specialization and international trade between individuals or between nations leads to
A. greater self-sufficiency. B. higher product prices. C. higher total output. D. higher utilization of resources.
In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm
Indicate whether the statement is true or false
Major U.S. exporters would be likely to oppose the sort of protectionist policies favored by domestic producers that compete with imports.
a. true b. false