Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.
Answer: B
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Suppose that for Merv the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10 . For his snack, Merv should buy:
a. the caviar if he has the $50; otherwise, the popcorn. b. the caviar if he has the $50; otherwise, nothing. c. the popcorn, whether he has the $50 or not. d. one serving each of the caviar and popcorn, if he has $51. e. five servings of popcorn for each serving of caviar.
How does a free-market system address the output selection task?
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The total labor cost with 4 employees is:
A. $21,500. B. $43,121. C. $38,000. D. $22,000.
Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. If the economy is at ppf2, a change in consumer taste would be shown by a
A. movement along ppf1. B. movement along ppf2. C. shift from ppf2 to ppf1. D. shift from ppf1 to ppf2.