Refer to the table below. As stated in the first row, the income of the consumer (1) equals $20. The price of good X (Px) equals $4.00, and the price of good Y (Py) equals $2.00. Total utility derived from consuming X and Y is listed. What combination of goods X and Y will maximize utility subject to the consumer's budget constraint?
3 units of X and 4 units of Y
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As the price elasticity of supply approaches infinity, very small changes in price lead to
a. very large changes in quantity supplied. b. very small changes in quantity supplied. c. no change in quantity supplied. d. None of the above is correct.
The effect of higher prices from the domestic sugar beet program in the United States is:
A. Economically efficient because it maintains the income of sugar beet farmers and reduces potential unemployment costs B. That it discourages the production of sugar beets in the United States because businesses cannot afford to use sugar beets in production C. That it increases exports of sugar beets from the United States to other nations D. "Regressive" because low-income households spend a larger percentage of their income on food than do high-income households
If real GDP decreases, the
A) supply of money decreases. B) demand for money increases. C) supply of money increases. D) demand for money decreases. E) quantity of money demanded increases.
Reducing risk through the purchase of assets whose returns do not always move together is
A) diversification. B) intermediation. C) intervention. D) discounting.