If Bill asks for a second helping of pancakes, then his
a. second helping must be free
b. marginal utility of the second helping must be negative
c. price per helping is too low
d. marginal utility of the second helping must be positive
e. marginal utility of the second helping must be less than the marginal utility of the first helping
D
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The five competitive forces model was developed by
A) Michael Spence. B) John Nash. C) Porter Smith. D) Michael Porter.
A vertical supply curve exhibits
A) a constant elasticity of supply. B) a perfectly inelastic supply curve. C) Both A and B are true. D) None of the above.
Consider Gary's utility function: U(X,Y) = 5 XY, where X and Y are two goods
If the individual consumed 10 units of X and received 250 units of utility, how many units of Y must the individual consume? Would a market basket of X = 15 and Y = 3 be preferred to the above combination? Explain.
A decrease in aggregate demand will cause
A) prices to fall according to classical economists, and unemployment to increase according to Keynes. B) prices to fall and unemployment to increase according to both classical economists and Keynes. C) aggregate supply to fall according to classical economists, and prices to fall according to Keynes. D) aggregate supply to fall according to Keynes, and unemployment to increase according to classical economists.