Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max's current MRS = -1, then Max
A) is at point e.
B) is maximizing his utility.
C) will be better off by purchasing more burgers.
D) None of above.
A
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Displayed below is the payoff matrix of firm A for four different strategies, A1, A2, A3, and A4, and the potential retaliatory responses of firm B (B1, B2, B3, B4).Table 12-1 ? B1 B2 B3 B4 A1 100 50 25 10 A2 10 60 150 200 A3 50 75 200 250 A4 30 50 100 150 If firm A uses the maximin criterion, which strategy will it choose? ?
A. A1 B. A2 C. A3 D. A4
Which of the following assumptions is found in Friedman's model but not in the new classical model?
A) Supply of labor depends on expected real wage. B) Workers gradually adapt their expectations of the price level to the actual price level. C) imperfect information D) market-clearing labor market
How does the goods market return to equilibrium if AE is less than production?
What will be an ideal response?
United States coins and currency are backed by
A) silver. B) gold. C) reserves of foreign currencies. D) confidence that they will retain their value.