Ricky is in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
B
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The value of currently produced final goods and services measured in current year prices is called:
A) real GDP. B) nominal GDP. C) imputed values. D) inflation.
Suppose the current level of output is 5000 and the elasticity of output with respect to capital is 0.4. A 10% increase in capital would increase the current level of output to
A) 5020. B) 5050. C) 5200. D) 5500.
In the process of reducing pollutants in our environment, we are
A) achieving a cleaner environment at no real cost. B) causing higher levels of unemployment. C) reallocating resources in an inefficient manner. D) trading off less of other goods and services for a cleaner environment.
Khan wants to see his family this upcoming summer. He knows when he will travel well in advance, and he does not care what time he flies or how long the flight takes. Khan will probably ______.
a. have to pay more for his tickets than someone flying prime daytime hours b. have to pay more for his tickets than someone flying with no advance notice c. pay less for his tickets than someone who wants a quick flight with no layovers d. pay the same amount for his tickets as anyone else flying to the same place