When an economy operates efficiently,
a. the MRPs of every input into the production of a good are equal.
b. marginal utility equals marginal cost for every good.
c. the price of a good equals the sum of the marginal physical products of its inputs.
d. All of the above are correct.
b
Economics
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The demand for money as a cushion against unexpected contingencies is called the
A) transactions motive. B) precautionary motive. C) insurance motive. D) speculative motive.
Economics
As used in this text, "autonomous" variables are
A) spontaneous variables that are completely unpredictable. B) completely independent of income, although they can be explained by movements in other variables. C) determined only by income levels. D) the same as endogenous variables.
Economics