Show, using utility theory, why a consumer who is initially maximizing her utility will alter her consumption pattern in response to a change in the price of a good
If marginal utilities per dollar are initially equal across all goods, a fall in the price of one will raise the marginal utility per dollar consumed on that good. She can increase total utility by allocating more dollars toward that good.
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Refer to Table 4.2. With which scenario will you be worst off by investing in Japanese bonds instead of U.S. bonds?
A) A B) B C) C D) D
Which of the following is most important for the achievement of long-term prosperity and strong economic growth?
a. expansionary monetary policy b. expansionary fiscal policy c. price stability d. a balanced federal budget
Refer to Figure 3.4. What is the marginal cost of the 15th hour spent on this activity?
A. $80
B. $5.33
C. $2.66
D. $4.00
Two goods with a low cross elasticity of demand are competing in the same market
a. True b. False Indicate whether the statement is true or false