At the consumer's optimum the
a. budget constraint will have a slope of MUx/Px.
b. slope of the indifference curve is equal to the slope of the budget constraint.
c. indifference curve will intersect the budget constraint at the midpoint of the budget constraint.
d. Both b and c are correct.
b
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Liabilities of the commercial banking system include
A. reserves and loans. B. reserves and deposits. C. loans and deposits. D. deposits.
An allocation of resources is Pareto efficient if it is:
A. possible to make at least one consumer better off without making someone else worse off. B. possible to make all consumers better off. C. impossible to make any consumer better off without making someone else worse off. D. impossible to make any consumer better off without making everyone worse off.
Addictive substances such as tobacco have long-run demand that is more ______ than short-run demand. In other words, the consumption of addictive substances ______ price sensitive and raising prices ______ reduce consumption over time.
a. price elastic; is; will b. price inelastic; is; will c. price inelastic; is not; will not d. price elastic; is not; will not
When property rights are clearly defined, there is generally a
A. regulatory agency that handles externalities. B. common property problem. C. law that must be passed to ensure fairness. D. voluntary agreement that can be reached.