When consumers maximize utility, they obtain:

A. the highest indifference curve that touches their budget constraint.
B. any intersection of the budget line and the indifference curve.
C. the lowest indifference curve that touches their budget constraint.
D. a point of intersection between indifference curves.

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

What is the eventual effect on real gdp if the government increases its purchases of goods and services by $80,000? assume the marginal propensity to consume (mpc) is 0.75. $ what is the eventual effect on real gdp if the government, instead of changing its spending, increases transfers by $80,000? assume the mpc has not changed. $ an increase in government transfers or taxes, as opposed to an increase in government purchases of goods and services, will result in an identical eventual effect on real gdp. a smaller eventual effect on real gdp. a larger eventual effect on real gdp. no change to real gdp.

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?