Steve has two goods he can spend his income on, skiing and skating, and his marginal utilities from each are in the table above. The price of each unit of skiing is $10 and the price of each unit of skating is $10. Steve has $40 to spend
What quantities of skiing and ice skating will Steve consume to maximize his utility? A) 0 units of skiing and 4 units of skating
B) 2 units of skiing and 2 units of skating
C) 4 units of skiing and 0 units of skating
D) 2 units of skiing and 4 units of skating
B
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Refer to the table above. If the firm decides to choose factory Far over Close, what is its marginal opportunity cost of transporting products to the market?
A) $150 B) -$200 C) $50 D) $100
In the long run, a firm has
A) no factors of production that are fixed. B) no factors of production that are variable. C) no factors of production that are either fixed or variable. D) fixed factors of production but no variable resources.
If there is an active surplus (+) of +$30 billion and an actual deficit (-) of -$40 billion, then:
a. The full employment deficit must be -$70 billion. b. The passive deficit (-) must be -$10 billion. c. The full employment deficit (-) must be -$30 billion d. The passive deficit (-) must be -$70 billion. e. The passive surplus (+) must be +$40 billion.
Dummy variables are used in time-series forecasting models
A. to change the intercept of a regression in selected periods. B. to account for random variation in the data. C. to account for seasonal variation in the data. D. both a and b E. both a and c