If the marginal utility of apples exceeds the marginal cost of producing apples, then in a free market production of apples will ____, with the likely result that marginal utility will ____
a. rise; fall
b. fall; rise
c. rise; rise
d. fall; fall
a
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Suppose that a family saves and borrows to buffer itself against changes in income. These actions relate to which problem in measuring inequality?
a. in-kind transfers b. negative income tax c. transitory versus permanent income d. economic mobility
Under a fixed exchange rate regime, what will happen to the balance of payments for the United States and Mexico when the demand for Mexican goods rises? What is the only possible solution to this problem, given the fixed exchange rate?
What will be an ideal response?
The definition of a normal good suggests that the
A. income elasticity of demand for the good is greater than 0. B. income elasticity of demand for the good is negative. C. price elasticity of demand for the good is negative. D. cross-price elasticity of demand for the good is positive.
Consider the following economic agents: a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) the government B) producers C) consumers D) consumers and producers E) the government, consumers, and producers