When the economy is operating at an output rate less than full-employment capacity,
a. a strong demand for resources will cause resource prices to rise.
b. actual unemployment will be less than the natural rate of unemployment.
c. the rate of inflation will tend to rise.
d. weak demand for investment will place downward pressure on real interest rates.
D
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In the Alcoa case, the Supreme Court abandoned the per se rule and established the rule of reason
a. True b. False Indicate whether the statement is true or false
In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:
a. consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium. b. to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased. c. to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available. d. to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased. e. the marginal utilities among luxury goods are always equal among certain high-income earners.