Resource Owners Will Supply Additional Units of a Resource as Long

question 104

Multiple Choice

Resource owners will supply additional units of a resource as long as _____

• A)the marginal utility of the additional units of the resource exceeds their price.
• B)doing so decreases their income taxes.
• C)all resource earnings are economic rent.
• D)their total utility does not become negative.
• E)doing so increases their utility.

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Definitions:

U.S. Interest Rates

The rate at which interest is paid by borrowers for the use of money that they borrow from lenders, specifically within the United States.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically help stabilize an economy by increasing or decreasing with the economic cycle.

Annually Budgeted

Annually budgeted refers to the process of allocating financial resources and planning expenditures for a year ahead.

Expansionary Gap

A situation where the actual economic output exceeds the potential output significantly, often leading to inflation.