Brook is spending all of her income consuming products X and Y. If MUx/Px=1 and MUy/Py=6, what should Brooke do to maximize her satisfaction?
A. Buy more X and more Y
B. Buy more X and less Y
C. Buy less X and less Y
D. Buy less X and more Y
E. Make no changes
B. Buy more X and less Y
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________ will lead to an increase in the gross domestic product of a country, all other variables remaining unchanged
A) An increase in expenditure incurred by the government B) A fall in the expenditure on consumption C) An increase in imports D) A fall in the expenditure on investment goods
The long-run Phillips curve shows the relationship between the inflation rate and the unemployment rate when the economy is
A) in expansion. B) at full inflation. C) away from potential GDP. D) in recession. E) at full employment.
Which of the following is correct?
a. In a closed economy, equilibrium in the market for loanable funds occurs where saving = investment. b. Investment is the source for the supply of loanable funds. c. If there is a surplus in the market for loanable funds, the interest rate rises. d. All of the above are correct
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$0.50Friendly Groceries$4.00$2.50 What is the value added of Fulton Family Farm?
A. $0.00 B. $0.50 C. $2.50 D. $1.50