If MUx/Px > MUy/Py, the consumer can increase utility by buying less of good y, which means the MUy will rise
a. True
b. False
A
You might also like to view...
Which of the following is a macroeconomic policy?
A. Requiring locks on all guns. B. Tax cuts to bring the federal budget into balance C. Regulations limiting automobile emissions. D. How an early freeze in California will affect the price of fruit.
According to the principle of diminishing returns, an additional worker decreases total output
Indicate whether the statement is true or false
Which of the following is accurate regarding government expenditures in the United States?
a. The federal government spends considerably more than state and local governments combined. b. The federal government spends more than local governments but less than state governments. c. Local governments spend more than state governments, which in turn, spend more than the federal government. d. Since 1930, total government expenditures as a share of GDP have declined.
Which of the following would economists label as an example of the "tragedy of the commons?"
A. The over-fishing of the oceans B. The use of pesticides on private farm land C. The use of growth hormone on cattle D. The neighbor who does not mow his yard