In purchasing diamonds and water, a consumer would maximize utility by
a. dividing expenditure equally between those two goods
b. equating the marginal utilities from each of those two goods
c. equating average utility per diamond with average utility per unit of water
d. equating the total utility per diamond with the total utility per unit of water
e. equating marginal utility per dollar spent on each of those two goods
E
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All of the following are critical functions of the government in facilitating the operation of a market economy except
A) enforcing contracts. B) ensuring an equal distribution of income to all citizens. C) protecting private property. D) enforcing property rights.
If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a
A) convenient variable. B) coincident variable. C) leading variable. D) lagging variable.