The cost of consumption has two components:
a. the substitution effect and the income effect
b. the law of demand and the law of diminishing marginal utility
c. the price effect and the income effect
d. the money price and the time price
e. saving and taxes
D
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Use the above figure. If this monopolist was not regulated, the profit-maximizing quantity and price would be
A) Q2 and P1. B) Q2 and P3. C) Q3 and P2. D) Q4 and P1.
All of the following are examples of negative externalities except one. Which is the exception?
a. Water pollution. b. Your roommate going on a diet. c. Second-hand smoke. d. Loud conversation in the workplace.
_____ is the locus of the minimum points of various short-run average cost curves depicting different plant sizes
a. Long-run marginal cost b. Expansion path c. Long-run average cost d. Isocost
If the value of nominal GDP of an economy is 1.3 times the value of its real GDP, then the value of the GDP deflator in the economy will be 130
a. True b. False Indicate whether the statement is true or false