Category: Economics Mcqs

Buy national policies ?

A. result in government purchase policies favoring domestic over foreign producers
B. result in government purchase policies favoring foreign over domestic producers
C. attempt to restrict the number of tourists leaving a nation
D. are intended to publicize the advantage of the most efficient domestic companies

Which of the following is not true regarding the outcome of a consumer’s optimization process ?

A. The marginal utility per dollar spent on each good is the same
B. The marginal rate of substitution between goods is equal to the ratio of the prices between goods
C. The consumer’s indifference curve is tangent to his budget constraint
D. The consumer has reached his highest indifference curve subject to his budget constraint
E. The consumer is indifferent between any two points on his budget constraint