A movement from one point to an another point on the same consumption function could be caused due to
a. changes in wealth.
b. an increase in the general price level.
c. decrease in the real interest rates.
d. changes in disposable income.
d
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Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
A decrease in income ________
A) lowers money demand for any given interest rate B) lowers interest rates ceteris paribus C) leads to a leftward shift of the money demand curve D) all of the above E) none of the above
What is one reason for the high interest rates for home loans offered to those with low credit ratings?
A) Predatory lending practices B) Those with lower credit ratings faced a restricted supply of loans, ceteris paribus. C) Those with lower credit ratings typically demand greater loans, ceteris paribus. D) Government regulation
Jamie's marginal utility from muffins and from doughnuts (in utils) is shown in the accompanying table. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1.MuffinsPer DayMarginal UtilityPer MuffinDoughnutsPer DayMarginal UtilityPer Doughnut140220230415320510What is Jamie's optimal combination of muffins and doughnuts each day?
A. 1 muffin, 6 doughnuts B. 2 muffins, 4 doughnuts C. 4 muffins, zero doughnuts D. 3 muffins, 2 doughnuts