For lunch, Ramon always eats either a slice of pizza or a hamburger. His weekly lunch budget is $48. Each hamburger costs $6 and each pizza slice costs $3. When deciding how much of each good to buy, Rick knows that 2 hamburgers and 4 pizza slices will give him a utility of 8. What is Ramon’s utility at his utility-maximizing point?
a. 32
b. 48
c. 40
d. 24
a. 32
Ramon’s utility at his utility-maximizing point is 32.
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Refer to Table 4-7. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $10.50; Q* = 1,180,000 B) W* = $10.50; Q* = 590,000 C) W* = $9.50; Q* = 570,000 D) W* = $11.50; Q* = 570,000
The effect time lag is the time period that elapses
A) between when an economic problem manifests itself and it is officially acknowledged. B) between the recognition of an economic problem and implementing policies to solve it. C) between implementing policies to solve an economic problem and when the results of that policy can be measured. D) between the beginning of the budgetary process and the final budget resolution.
What was not one of the government's strategies to pull the nation out of the Great Depression?
a. Large subsidies for manufacturing companies. b. Sizable increases in employment of emergency workers. c. Development of the Federal Deposit Insurance Corporation (FDIC). d. Institute price controls for farmers.
Patent laws promote technical progress in all of the following ways except one. Which is the exception?
a. They allow other firms to copy successful products as soon as they are marketed. b. They prevent duplication of inventions. c. They provide a stimulus to innovation. d. They provide the inventor with a temporary monopoly. e. They increase a firm's incentive to incur the up-front costs of developing new products.