A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods
Indicate whether the statement is true or false
FALSE
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During the Great Depression of the 1930s, the aggregate demand curve intersected the aggregate supply curve in the:
a. horizontal portion of the aggregate supply curve. b. upward-sloping part of the aggregate supply curve. c. vertical portion of the aggregate supply curve. d. early years in the horizontal portion, but in the later years in the vertical portion. e. early years in the vertical portion, but in the later years in the horizontal portion.
Who is affected by externalities? Those receiving external benefits differ from those incurring external costs in that external benefits are associated with
a. government intervention b. market failure c. unclear property rights d. third parties e. free riders
The specificity rule implies that changing property rights as a way to correct externalities is preferred to the use of government taxes and subsidies.
Answer the following statement true (T) or false (F)
A patent is a government granted exclusive right to sell a product for a period of time.
Answer the following statement true (T) or false (F)