If MUa/Pa is greater than MUb/Pb, and the consumer is consuming both goods, the consumer is not maximizing utility. True or false. Explain
What will be an ideal response?
True, when the consumer has maximized utility, the marginal utility per dollar spent on each good purchased will be equal, and the consumer will be on her budget line. In this case, the consumer should consume more a and less b.
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The Constitution created an environment conducive to economic growth and development because the federal government could constitutionally do all of the following except
(a) Levy uniform taxes (b) Coin money and regulate its value (c) Regulate commerce, thus prohibiting states from erecting barriers to the interstate movement of goods (d) Set "fair" prices on the private sale of goods in the marketplace
Today, the United States charges an average tariff rate
A) that is more than its average tariff rate in 1930. B) which is greater than any other high-income country. C) of less than 1.5 percent. D) that exceeds 50 percent.