If Santiago thinks the last dollar spent on jeans yields less satisfaction than the last dollar spent on shoes, and Santiago is a utility-maximizing consumer, he should
a. decrease his spending on shoes.
b. decrease his spending on shoes and increase his spending on jeans.
c. increase his spending on jeans.
d. increase his spending on shoes and decrease his spending on jeans.
D
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The poverty line in the United States
A. last changed in 1980. B. never changes. C. changes with the level of inflation and family size. D. changes with the minimum wage.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more positive (or less negative). b. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). c. The real risk-free interest rate falls, and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Answer the following statement(s) true (T) or false (F)
1. The points that are directly on a production possibilities curve represent varying levels of efficiency. 2. A production possibilities curve that is bowed outward illustrates the law of increasing opportunity cost. 3. The Law of Increasing Opportunity Cost refers to the condition where the opportunity cost of producing additional units of a good rises as society produces more of that good 4. The economy can grow only with qualitative or quantitative changes in the factors of production.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. Micro Oven's average fixed costs of producing two units of output are
A. $150. B. $300. C. $450. D. indeterminate from this information.