If Mr. Smith thinks the last dollar spent on shirts yields more satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should:
a. decrease his spending on cola.
b. decrease his spending on cola and increase his spending on shirts.
c. increase his spending on shirts.
d. increase his spending on cola and decrease his spending on shirts.
b
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Explain the reasons why the AD curve slopes downward
What will be an ideal response?
The rate of time preference is positive
a. only when interest rates are positive b. because interest rates are positive c. only when people save d. because people save e. because people prefer goods now to the same goods later
The government considers a market to be unconcentrated if its HHI number is less than ____, and highly concentrated if that number exceeds ____
a. 1,000 . 1,800 b. 100; 9,000 c. 50; 500 d. 500; 1,300
State and local governments typically spend most of their budgets on providing
a. education. b. public goods. c. public welfare programs. d. police protection and administrative services.