Which of the following occurs when a consumer equilibrium has been achieved?

Which of the following occurs when a consumer equilibrium has been achieved?
 a. The marginal utility of the last unit purchased is identical for all goods.
 b. The price of the last unit purchased is identical for all goods.
 c. An equal amount of income is spent on all goods purchased.
 d. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed.

QUESTION 2

If the market price of the product that employs labor in production increases:
 a. the marginal product of labor increases.
  b. the demand curve for labor shifts to the left.
  c. the price of labor decreases.
  d. the marginal revenue product of labor increases.
  e. the supply curve of labor shifts to the left.

QUESTION 3

Which of the following is a possible cause of a rightward shift in the supply of healthcare?
 a. A fall in the price of resources used to produce healthcare products
 b. An increase in the price of resources used to produce healthcare products
  c. A fall in the profit expectations of healthcare providers
 d. A fall in the number of suppliers of healthcare
 e. An expectation of an increase in the price of healthcare products in future

QUESTION 4

A university cafeteria changes from offering all-you-can-eat meals for one low price to selling each food item separately. After this change, one would expect that the marginal utility of the last food item consumed in the cafeteria by the typical student would:
 a. decrease since less food is now likely to be consumed by students who eat a meal in the cafeteria.
  b. increase since less food is now likely to be consumed by students who eat a meal in the cafeteria.
  c. not change since the same quantity of food is now likely to be consumed at each meal.
 d. decrease since more food is now likely to be consumed by students who eat a meal in the cafeteria.

QUESTION 5

Which of the following statements best illustrates the relationship between the market for products and the market for resources?
 a. An increase in the price of cameras will decrease the demand for film.
  b. As income rises, people demand relatively smaller amounts of food.
  c. An increase in the demand for textiles will increase the demand for textile workers.
  d. An increase in the price of butter will cause more people to buy margarine.
  e. A decrease in the demand for tea will increase the demand for coffee.

QUESTION 6

What do you mean by the term 'market process'?
 a. It refers to the way that scarce goods and services are allocated through individual actions and self-interest of buyers and sellers.
  b. It refers to the way that scarce resources are allocated by a government to firms that value them the most.
 c. It refers to the way in which markets adjust to changes in demand and supply.
 d. It refers to a system in which goods and services are exchanged through transactions by private households and firms.
  e. It refers to a way in which final goods and services are distributed to potential consumers.

QUESTION 7

As an individual increases his consumption of onion rings, it is likely that:
 a. his marginal utility and total utility both increase.
 b. his marginal utility and total utility both decrease.
 c. his marginal utility increases and his total utility decreases.
  d. his marginal utility decreases and his total utility increases.

QUESTION 8

An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____.
 a. pay a lower wage rate to labor
  b. increase truck production
  c. hire more workers
  d. increase capital used in production
  e. increase land used in production

QUESTION 9

Which of the following is true?
 a. Sellers are willing to supply more of a good or service at every price after costs have increased.
  b. A fall in the price of a product leads to an increase in the profits earned by sellers.
 c. A fall in the cost of production leads to a downward movement along the supply curve of a product.
  d. Sellers are willing to supply more of a good or service at every price after costs have decreased.
  e. An increase in the price of a product leads to a fall in the profits earned by sellers.