Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $6. If Kyle is currently buying five turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is not; gained from the fifth sandwich is greater
B. is not; gained from the fifth sandwich is less
C. is; from the fifth sandwich is less
D. is; from the fifth sandwich is greater
Answer: A
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The collapse of the subprime mortgage market
A) did not affect the corporate bond market. B) increased the perceived riskiness of Treasury securities. C) reduced the Baa-Aaa spread. D) increased the Baa-Aaa spread.
If the money rate of interest is 15 percent and the real rate of interest is 5 percent, the inflationary premium is
a. zero. b. 5 percent. c. 10 percent. d. 15 percent.
Refer to the given graph. A movement from a to b along C 1 might be caused by a(n):
A. recession.
B. wealth effect of an increase in stock market prices.
C. increase in income tax rates.
D. increase in real GDP.
An increase in the price of pineapples will result in
A) a decrease in the demand for pineapples. B) an increase in the supply of pineapples. C) a larger quantity of pineapples supplied. D) a smaller quantity of pineapples supplied.