If we observe that William's budget constraint has moved inward, then we know for certain that
a. his income must have decreased.
b. he will be indifferent between goods X and Y.
c. the price of one or both of the goods must have increased.
d. his utility will decrease.
d
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Guaranteed benefits under government programs such as Social Security or Medicare are called
A) controllable expenditures. B) entitlements. C) automatic stabilizers. D) discretionary spending.
The rule for the optimal use of any input says that
A. when MRP is less than price, it pays to expand resource use. B. when MRP is greater than price, it pays to expand resource use. C. when MRP equals price, resource use should be cut back. D. resources should be used only if MRP exceeds price.
Marginal benefits are downward sloping when
A. there are no total benefits. B. the slope of the marginal benefits curve is negative. C. total benefits are increasing at a decreasing rate. D. marginal costs are upward sloping.
To measure the amount of human capital available in a country, it would be best to determine _____.
(A) The literacy rate of that country. (B) The trading partners of that country. (C) If the nation is rich in natural resources. (D) The comparative advantage of the most profitable exported goods.