Suppose that MU x /P x exceeds MU y /P y . To maximize utility, the consumer who is spending all her money income should buy:
A. less of X only if its price rises.
B. more of Y only if its price rises.
C. more of Y and less of X.
D. more of X and less of Y.
Answer: D
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The Employment Act of 1946: a. guaranteed full employment
b. allowed the federal government to hire as many people as it could to achieve full employment. c. gave the federal government the power to levy an income tax. d. imposed a responsibility on the federal government to promote maximum employment. e. obligated the federal government to run budget surpluses to achieve full employment.
Which of the following is not one of the five fundamental questions?
A. What prices will be charged for goods and services? B. Who will get the goods and services? C. What goods and services will be produced? D. How will the system promote progress?