An interior solution to a consumer's utility maximization problem implies
A) consuming a positive amount of one good and a negative amount of the other good.
B) consuming negative amounts of all goods.
C) consuming less than optimal amounts of all goods.
D) consuming more than an optimal amount of at least one good.
C
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If a government policy change harms a monopolist, the government could
A) tax those who get additional gains and compensate the monopolist, thereby making the change a Pareto improvement. B) increase the general tax rate and compensate the monopolist, thereby making the change a Pareto improvement. C) do nothing, because the change is a Pareto improvement. D) It is not possible to mitigate the harm to a monopolist.
If the budget deficit was eliminated, the federal government would have more money than it could spend
a. True b. False Indicate whether the statement is true or false