Lily has $10 to spend each week on fish and chicken. Fish costs $2 a serving and chicken costs $3 a serving. The table shows Lily's marginal utilities of fish and chicken. Lily will consume ________ servings of chicken and ________ of fish each week
A) 4; 0
B) 1; 3
C) 0; 5
D) 2; 2
D
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Refer to Table 11-1. Based on the table above, which country has a higher standard of living and why?
A) Sweden has a higher standard of living because their GDP per capita is higher. B) Sweden has a higher standard of living because their GDP is higher. C) Ireland has a higher standard of living because their GDP per capita is higher. D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.
The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0. B) the growth rate of real GDP. C) the growth rate of the velocity of money. D) the growth rate of the price level.
Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included:
a. increased personal and corporate tax rates. b. price and wage controls. c. reduced purchases of government debt by the Federal Reserve. d. discontinuance of the practice of "pegging" interest rates. e. All of the above.
An effective price floor must be set
A. above the equilibrium price. B. either at or below the equilibrium price. C. below the equilibrium price. D. at the equilibrium price.