Consumer equilibrium is reached when:
a. an individual spends her entire income
b. there is no way a consumer, given the available income, could increase her satisfaction.
c. marginal utility begins to diminish.
d. marginal utility is maximized, subject to the available income.
b
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Use the following consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610If a government sector is introduced and a lump-sum tax of $30 billion is imposed at all levels of real GDP, then the values in the consumption column become
A. $426, $466, $506, $546, $586. B. $420, $460, $500, $540, $580. C. $432, $472, $512, $552, $592. D. $430, $470, $510, $550, $590.
Efficiency wages, above equilibrium minimum wage rates, and higher union wages are likely to
A) reduce the equilibrium real wage rate. B) decrease the natural unemployment rate. C) increase the equilibrium real wage rate. D) increase cyclical unemployment. E) increase the natural unemployment rate.
In the mid 1980s, the massive current account deficits were related to massive U.S. government budget deficits
Indicate whether the statement is true or false
Which term describes a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls?
a. Complement good b. Inferior good c. Normal good d. Superior good