Which of the following occurs when a consumer equilibrium has been achieved?
a. The marginal utility of the last unit purchased is identical for all goods
b. The price of the last unit purchased is identical for all goods.
c. An equal amount of income is spent on all goods purchased.
d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.
d
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If the government increases aggregate demand when the economy is at both short-run and long-run equilibrium, the full long-run effect of this fiscal policy will be to
A) increase real Gross Domestic Product (GDP). B) increase the price level. C) increase either the real Gross Domestic Product (GDP) or the price level, depending on the length of the time lag. D) decrease both real Gross Domestic Product (GDP) and the price level.
The term "capitalism" refers to which of the following?
a. A religion based on amassing capital. b. An economic system characterized by private ownership of resources, and decentralized market allocation. c. An economic system characterized by government ownership of resources and centralized allocation. d. None of the above answers are correct.