An interior solution to a consumer's utility maximization problem implies
A) consuming a positive amount of all goods.
B) consuming negative amounts of all goods.
C) consuming less than optimal amounts of all goods.
D) consuming more than an optimal amount of at least one good.
A
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A decrease in the nominal money supply would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
In the 1990s, several stocks had very, very high price to earnings ratios. These stocks appeared overvalued to many observers. What might the people who bought them have been thinking?
The government corrects for externalities in all of the following ways EXCEPT
A. regulation. B. taxes. C. subsidies. D. lobbying.
If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing. B) average variable cost is decreasing. C) marginal cost must be decreasing. D) average variable cost could either be increasing or decreasing.