Assume that a consumer purchases a combination of product A and product B such that the MUa/Pa = 8 and MUb/Pb = 6. To maximize utility without spending more money, the consumer should:
A. Purchase less of product A and more of product B
B. Purchase more of product A and less of product B
C. Purchase more of both product A and product B
D. Make no change in purchases of products A and B
B. Purchase more of product A and less of product B
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The law of demand states that, other things remaining the same, the higher the price of a good, the
A) smaller is the demand for the good. B) larger is the demand for the good. C) smaller is the quantity of the good demanded. D) larger is the quantity of the good demanded.
A carefully written partnership agreement can maximize the advantages of the partnership structure and minimize the potential disadvantages. Which of the following points will help in writing an effective partnership? agreement?
A. A partnership agreement should strictly follow only the state? laws, as they will drive the business. B. Incorporate a broad and general understanding of what the business association will be to allow for flexibility. C. A great personal partnership cannot get in the way of a successful business partnership. D. Address the hopes of each? owner, decision-making? strategies, and succession and exit strategies. E. ?Dispute-resolution procedures should be? avoided, as they apply to corporations.
comparing M1 and M2 we know that
What will be an ideal response?
A commercial bank has checkable-deposit liabilities of $50,000 and a reserve ratio of 20 percent. What is the amount of required reserves?
A. $1 million B. $10,000 C. $50,000 D. $250,000