Suppose you have spent your entire budget and the marginal utilities per dollar spent on all the goods you buy are equal. Which of the following is true?
a. You are not being rational.
b. There is a way to increase your utility by reallocating your purchases.
c. You will reduce your utility if you allocate your income in any other way.
d. You are minimizing your total utility.
e. You have chosen a consumption bundle that lies below your budget line.
C
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If consumption spending increases because people feel more confident about the future,
A) aggregate demand will shift to the left. B) aggregate demand will shift to the right. C) aggregate supply will shift to the left. D) aggregate supply will shift to the right.
Patents stimulate investment
a. by giving inventors an incentive to incur up-front costs of developing new products b. by giving tax breaks to inventors c. by guaranteeing a profit from new products d. by lowering interest rates e. through government payments that cover costs of research and development