Total utility is maximized when a consumer has spent all of his or her income and
A) spent equal amounts on all goods.
B) marginal utility is maximized.
C) the total utility per dollar from all goods is equal.
D) the marginal utility per dollar from all goods is equal.
D
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Allocative efficiency is achieved when the production is such that
A) the marginal benefit exceeds the marginal cost by as much as possible. B) marginal cost equals zero. C) marginal benefit is equal to marginal cost. D) the production point is on the PPF. E) None of the above is true.
In the long run, a typical perfectly competitive firm will produce at the minimum point of its long-run average total cost curve and the minimum point of its short-run average total cost curve
a. True b. False
If the price of apples falls and apples and oranges are substitutes, we would expect:
a. The quantity of apples demanded to increase and the demand for oranges to increase.
b. The quantity of oranges demanded to decrease and the demand for apples to increase.
c. The quantity of apples demanded to increase and the demand for oranges to decrease.
d. The quantity of oranges demanded to decrease and the demand for apples to decrease.
Supply-side economists believe that, if the marginal tax rates are high, we can raise tax revenue by ________.
Fill in the blank(s) with the appropriate word(s).