If an economist states that not enough of a good is being produced, she usually means that
A) not everyone can afford the good.
B) price exceeds marginal cost.
C) consumer surplus equals zero.
D) at equilibrium, some people who still wish to sell the good cannot find a buyer.
B
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A decrease in the price of product X will: a. increase the marginal utility per dollar spent on X
b. decrease the marginal utility per dollar spent on X. c. result in an increase in the total utility from consumption of X. d. do both (a) and (c).
Government stabilization policy
a. cannot influence investment spending. b. can stimulate aggregate demand and thereby induce businesses to invest, but the amount is not totally predictable. c. can stimulate aggregate demand, but investment spending will not be affected. d. can stimulate aggregate demand, but only in the long run.