Which of the following equations corresponds to an optimal choice point? (i) MRS = PX/PY (ii) MUX/MUY = PX/PY (iii) MUX/PX = MUY/PY (iv) MUX/PY = MUY/PX
a. (i) only
b. (i), (ii), and (iii) only
c. (ii) and (iv) only
d. (i), (ii), (iii), and (iv)
b
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For each $1 of a tax cut, economists expect consumption to
A. decrease by $1. B. decrease by less than $1. C. increase by less than $1. D. increase by $1.
An unexpected fall in Retail Sales should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
In an industry characterized by a natural monopoly, which of the following characteristics will be observed?
a. The long-run average cost curve will be upward sloping. b. The market price of the product will be very low. c. Competition is both impossible and inefficient. d. Number of producers operating in this market will be low.
An increase in equilibrium quantity will result from each of the following except
A. an increase in supply and an increase in demand.
B. an increase in demand and no change in supply.
C. an increase in supply and no change in demand.
D. a decrease in demand and a decrease in supply.