Exhibit 6A-6 Consumer equilibrium
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As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is ____ the marginal rate of substitution at point Y.
A. less than
B. greater than
C. equal to
D. twice
Answer: B
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When agricultural production increases, the total amount paid for agricultural products tends to
a. increase because demand is price elastic b. decrease because demand is price elastic c. increase because demand is price inelastic d. decrease because demand is price inelastic e. remain constant because demand is price inelastic
Suppose the market price exceeds the typical perfectly competitive firm's short-run average total cost. What will happen to this market in the long run?
a. The market demand curve will shift to the left as firms exit. b. The market supply curve will shift to the left as firms exit. c. The market demand curve will shift to the right as firms enter. d. Both the market demand and supply curves will shift to the left as firms exit. e. The market supply curve will shift to the right as firms enter.
According to the principle of rational choice, a consumer should spend money on those goods which provide the most marginal utility per dollar.
Answer the following statement true (T) or false (F)
In 2013, the top 3% of wealth holders owned ________ of the nation's wealth.
A. 25.5% B. 54.5% C. 75.3% D. 92.9%