If the marginal utility per dollar spent on Good X exceeds that of Good Y, the utility-maximizing consumer should:
a. buy less of Good X and more of Good Y.
b. buy less of Good Y and more of Good X.
c. buy more of both Good X and Good Y.
d. buy less of both Good X and Good Y.
b
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"If an individual is to maximize the utility received from consumption, he or she should spend all available income. . . .". This statement assumes
a. that saving is impossible. b. that the individual is not satiated in all goods. c. that no goods are "inferior.". d. Both a and b.
In Sweden
A. the government has kept unemployment low by offering industry and workers a series of subsidies and incentives. B. education is free from nursery school through college. C. women may take a year off work after child birth while receiving 80 percent of their pay. D. All of the choices are true.
The self-correcting mechanism would be expected to be very rapid in an economy with
A. a large multiplier. B. flexible prices. C. rigid wages. D. high labor productivity.
The circular flow diagram includes the following players:
a. government, firms, financial markets, goods markets b. factor markets, goods markets, financial markets, firms c. households, firms, government, rest of the world d. households, factor markets, goods markets, firms