Suppose you spent your entire budget on goods so that the marginal utility per dollar spent on each is identical. Which of the following is true?
a. Your purchases are not efficient because there is no reason why you should buy the same quantity of each
b. You can increase your total utility by shifting income from low marginal utility generating goods to higher marginal utility generating ones.
c. You will reduce your total utility if you allocate income in any other way.
d. You are minimizing your marginal utility this way, which is what you want.
e. You can avoid diminishing marginal utility.
C
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In a regulated natural monopoly, a marginal cost pricing rule maximizes
A) total costs. B) producer surplus. C) economic profit. D) total surplus.
In Gordon's early presentation of the IS-LM and AD/SRAS/LRAS models, macro policy was assumed to have ________ effects on aggregate demand
A) immediate and certain B) immediate but uncertain C) delayed but certain D) delayed and uncertain
Forecasts based on an economic theory as opposed to historical data are called
A) causal econometric forecasts. B) non-time-series forecasts. C) dummy forecasts. D) explanatory variable forecasts.
For a(n) ______________ industry, firms can easily supply any quantity that consumers demand in the long run.
a. constant cost b. increasing cost c. decreasing cost d. inelastic cost