Juan is going to spend all of his income. For the last unit of Good X consumed Juan gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $4. The price of Good Y is $2. If Juan wants to maximize his utility he should
A. continue to purchase the same amount of Good X and Good Y.
B. increase the consumption of Good X and decrease the consumption of Good Y.
C. decrease the consumption of Good X and increase the consumption of Good Y.
D. decrease the consumption of Good X and decrease the consumption of Good Y.
Answer: A
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Who among the following is speculating?
A) The economics department that offers its first online principles course B) The bookstore that buys back the Math 101 textbooks without confirmation that the department definitely plans to adopt it again next semester C) The resident hall advisor who purchases party favors for the end-of-semester bash D) All of the above. E) B and C above.
The difference between the interest a bank earns on loans and securities and the interest paid on deposits and debt divided by the total value of its assets is called
A) interest spread. B) net interest margin. C) return on assets. D) return on equity.
The price of soybeans is $17 a bushel. To maximize profits, a competitive firm selling soybeans must
a. produce soybeans up to the point at which average variable cost equals $17. b. adjust production until the marginal cost of soybeans is $17. c. produce all the soybeans it can. d. produce soybeans up to the point at which fixed costs are minimized and variable costs are increasing.
To say monetary policy is transparent implies:
A. policymakers offer plausible explanations for their decisions along with supporting data. B. that anyone could figure out what the correct policy should be. C. that when faced with the same problem, policymakers will always react the same way. D. monetary policy should not be so difficult that most people couldn't understand it.