Consumers should continue to rearrange their consumption of two goods until:
a. the prices of the two goods are equal for the last dollar spent on each good.
b. marginal utility is the same for each good for the last dollar spent on each good.
c. the marginal utility per dollar's worth of the two goods is the same for the last dollar spent on each good.
d. the same amount of each is purchased.
c
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African governments wish to reduce the poaching of elephants, which is done to harvest the elephant’s ivory from its tusks. If this is the goal, economists would suggest that
A. a price ceiling for ivory should be set, to reduce the price in the market, which would discourage poaching. B. governments continue to stockpile confiscated ivory, to keep it out of the market. C. burning ivory reduces the supply, which would reduce the number of buyers. D. confiscated tusks should be sold by governments because this would lower the price of ivory and reduce the reward to poachers.
If international trade is restricted by the government:
a. domestic consumers are benefited. b. domestic producers are adversely affected. c. consumers in the importing country are required to pay higher prices for the goods. d. consumers can access to better quality product at lower prices. e. the resources are allocated to their highest paid uses.
With positive externalities, market equilibrium occurs at a quantity that is greater than the socially optimal output
a. True b. False Indicate whether the statement is true or false
The price of a seller's product in perfect competition is determined by
A) the individual seller. B) the individual demander. C) market demand and market supply. D) a few of the sellers.