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 10 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 mangos.
C
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In order to reduce inflationary pressure on the economy, what fiscal policy can the government use?
A) increase government expenditure on goods and services B) cut interest rates C) increase the quantity of money D) raise taxes E) cut taxes
An inflationary gap occurs when
A) aggregate demand falls, but other things remain constant. B) short-run aggregate supply falls, but other things remain constant. C) the short-run equilibrium level of real GDP is greater than long-run aggregate supply. D) the short-run equilibrium level of real GDP is less than long-run aggregate supply.
The portion of a worker's total earnings that is not necessary to keep the worker in her present job is called
a. opportunity cost b. consumer surplus c. economic profit d. economic rent e. normal profit
A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as a(n): (check all that apply)
a. economic hypothesis b. economic law c. normative economic statement d. economic principle