If a consumer must spend her entire income on some combination of two commodities and chooses to spend it all on just one of the commodities then:
A) the other commodity is an economic bad.
B) the other commodity must have zero marginal utility.
C) the other commodity generates less utility per dollar spent on the good.
D) the two commodities must be perfect substitutes.
C
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As the capital-labor ratio increases, break-even investment
A) increases at a decreasing rate. B) increases at an increasing rate. C) increases at a constant rate. D) remains unchanged.
One major role that the government plays in the market economy of the U.S. is:
One major role that the government plays in the market economy of the U.S. is: A. Setting production targets for major industries B. Requiring minimum levels of employment in major industries C. Allocating resources in various market activities D. Setting laws governing economic activity