The income-consumption curve for Dana between Qa and Qb is given as: Qa = Qb. His budget constraint is given as: 120 = Qa + 4Qb How much Qa will Dana consume to maximize utility?
A) 0
B) 24
C) 30
D) 60
E) More information is needed to answer this question.
B
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Use the following table to answer the next question.YearNominal Income (dollars)CPIReal Income (dollars)1$44,600130 2$48,200 $35,1833$51,000139 What is the value of real income in Year 1?
A. $343 B. $44,600 C. $57,980 D. $34,308
In the monetary small open-economy model with a flexible exchange rate, an increase in the world real interest rate
A) increases domestic output and increases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate. B) increases domestic output and decreases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate. C) decreases domestic output and increases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate. D) decreases domestic output and decreases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate.
The principal-agent problem:
A. arises from an imbalance of information. B. is caused by the principal having imperfect information about the agent. C. is caused by the principal being unable to perfectly observe the actions of the agent. D. All of these statements are true.
If marginal revenue exceeds marginal cost, a price-taker firm should
a. expand output. b. reduce output. c. lower its price. d. do both a and c.