Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and bananas cost $1 per pound. The marginal utility is 30 for the last pound of mangos purchased and 8 for the last pound of bananas
To maximize his utility, Robinson should buy A) more mangos and fewer bananas.
B) more bananas and fewer mangos.
C) the present combination of goods.
D) only bananas.
A
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Which of the following statements is true?
A) An overvalued domestic currency encourages exports. B) A country can keep its currency overvalued against the dollar as long as its dollar reserves last. C) A country can keep its currency overvalued against the dollar as long as it can print its own currency. D) An undervalued domestic currency encourages imports.
Since they require less monitoring of firms, ________ contracts are used more frequently than ________ contracts to raise capital
A) debt; equity B) equity; debt C) debt; loan D) equity; stock
In the short run, the firm's average fixed costs
a. always increase as output increases. b. always decline as output increases. c. equal zero. d. remain constant as output expands.
Which of the following is correct?
a. capital flight from the United States decreases net capital outflow b. an increase in the government budget deficit creates no change in net capital outflow c. if the U.S. imposes a restriction on imports, net capital outflow increases d. None of the above is correct.