Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced at $2 per unit). The marginal utility of the fifth unit of X is 30, and the marginal utility of the sixth unit of Y is 30 . If Mr. Rational is a utility maximizer, he should:
a. not buy anything.
b. buy more of X and less of Y.
c. buy less of X and more of Y.
d. buy X and Y in the quantities indicated.
e. buy less of X and even lesser than that of Y.
c
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Based on the above figure, if countries "A" and "B" faced the production possibilities curves above, both countries would benefit if
A) they did not trade. B) "A" produced industrial goods, and "B" produced agricultural goods. C) "B" produced industrial goods, and "A" produced agricultural goods. D) they both produced both industrial and agricultural goods.
Binding price floors benefit sellers because they allow sellers to sell all the goods they want at a higher price
a. True b. False Indicate whether the statement is true or false
A bank has $10,000 in excess reserves and the required reserve ratio is 20 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in total reserves
A) $80,000, $10,000 B) $100,000, $20,000 C) $50,000, $25,000 D) $100,000, $30,000
For any pair of countries, there is
A. one single exchange rate that will lead automatically to both countries realizing the gains from specialization and comparative advantage. B. a range of exchange rates that can lead indirectly to one country realizing the gains from specialization and comparative advantage, but not the other country. C. one single exchange rate that will lead indirectly to one country realizing the gains from specialization and comparative advantage, but not the other country. D. a range of exchange rates that can lead automatically to both countries realizing the gains from specialization and comparative advantage.