Suppose Katy Lucus maximized her total utility by buying different quantities of a variety of goods. Now suppose the price of one good rises. She then buys less of that good because the
a. MU/P of that good falls below the MU/P of other goods
b. MU/P of that good rises above the MU/P of other goods
c. marginal utility of that good diminishes
d. total utility of that good diminishes
e. marginal utility of that good rises
A
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A. Everything else remaining unchanged, if there is no wage rigidity in the market, how will equilibrium employment and wage rate change if there is a leftward shift in the demand curve for labor?
b. Everything else remaining unchanged, if there is no wage rigidity in the market, how will equilibrium employment and wage rate change if there is a rightward shift in the supply curve of labor?
"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
If the federal government were to run a budget deficit, this would:
A. increase the size of the national debt. B. reduce the size of the national debt. C. leave the size of the national debt unchanged. D. increase the national debt only if the government also expands the supply of money.
The foreign purchases, interest rate, and real-balances effects explain why the:
A. Aggregate demand curve is downward-sloping B. Aggregate demand curve may shift to the left or right C. Economy will adjust towards equilibrium D. Aggregate expenditures schedule may shift up or down