Marginal rate of substitution of good X for good Y equals the ratio of marginal utility of X
a. true
b. false
a. true
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When the actual inflation rate rises more rapidly than nominal wage rates, we would expect the short-run aggregate supply curve to shift to the right
a. True b. False Indicate whether the statement is true or false
The money supply of Granov is $10,000 in a 100-percent-reserve banking system. If the Central Bank of Granov decreases the reserve requirement ratio to 10 percent, the money supply could increase by no more than $9,000
a. True b. False Indicate whether the statement is true or false
Consider a Cournot duopoly with the following inverse demand function: P = 10 ? 0.5Q1 ? 0.5Q2. The firms' marginal costs are identical and are given by MCi(Qi) = 3. Based on this information, firm 1 and 2's reaction functions are:
A. r1(Q2) = 14 ? 0.25Q2 and r1(Q2) = 14 ? 0.25Q1. B. Q1 = 14 ? 0.25Q2 and Q2 = 14 ? 0.25Q1. C. r1(Q2) = 7 ? 0.5Q1 and r2(Q1) = 7 ? 0.5Q2. D. Q1 = 7 ? 0.5Q2 and Q2 = 7 ? 0.5Q1.
Refer to Table 10.1. The marginal product of the fourth unit of labor is:
A. 40. B. 50. C. 52.5. D. 210.