Refer to the data. What quantities of X and Y should be purchased to maximize utility?
Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18.
A. 2 of X and 1 of Y
B. 4 of X and 5 of Y
C. 2 of X and 5 of Y
D. 2 of X and 6 of Y
C. 2 of X and 5 of Y
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If the Fed is concerned about inflation, its actions ________ long-term interest rates so that investment ________ and net exports ________
A) lower; increases; decrease B) raise; decreases; decrease C) lower; increases; increase D) raise; increases; increase E) lower; decreases; decrease
Suppose that there are two goods that a small island nation can produce – coconuts and breadfruit
If the inputs for both goods are perfectly interchangeable and there is never a rise or fall in opportunity cost explain what the production possibilities frontier should look like and why.
What are food stamps?
What will be an ideal response?
A situation in which the government cannot implement an optimal tax policy because the policy is inconsistent with the government's incentives over time is known
A. government tax problem. B. time inconsistency of optimal policy. C. the double-counting game. D. Wagner's Law.