Figure 7.4
The above figure represents the marginal utility per dollar for candy bars and oranges for Sophia. The price of each product is $0.50, and Sophia has a budget of $4.Refer to Figure 7.4. If Sophia bases her choice on cognition, she will purchase ________ candy bars and ________ oranges to maximize utility.
A. 3; 5
B. 6; 2
C. 9; 0
D. 1; 5
Answer: A
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If a firm chooses to produce 100 units of output for $150 with 10 units of labor and 12 units of capital, when they could produce the same 100 units for $120 with 10 units of labor and 8 units of capital, the firm is technologically ________ and
economically ________. A) efficient; inefficient B) inefficient; efficient C) efficient; efficient. D) inefficient; inefficient
Refer to Table 18-5. The tax system is
A) progressive throughout all levels of income. B) regressive between $20,000 and $25,000 of income and progressive between $32,000 and $42,000. C) regressive throughout all levels of income. D) proportional throughout all levels of income.
The slope of the short-run aggregate supply curve depends on how sharply: a. the marginal cost of production rises as real GDP expands. b. the average cost of production rises as real GDP expands. c. real GDP increases as the price level rises
d. nominal GDP increases as the price level rises. e. product prices change as the price level rises.
If the Fed's open market operations expand the money supply, one can expect
a. a decrease in excess reserves. b. bond prices to rise. c. interest rates to rise. d. open market sales of T-bills.