As long as the marginal utility per dollar from pizza is greater than the marginal utility per dollar from soda, then to maximize utility a consumer will buy
A) more soda to equalize the marginal utility per dollar between soda and pizza.
B) less pizza and less soda.
C) more pizza and less soda.
D) equal amounts of pizza and soda.
C
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At one time, policymakers interpreted the Phillips curve as offering a menu of inflation–unemployment choices. Today, the curve is no longer viewed this way. Why has the interpretation changed?
What will be an ideal response?
Assume that banks lend out all their excess reserves. Currently, the legal reserves that banks must hold equal $11.5 billion. If the Federal Reserve decreases its reserve requirement from 10 percent to 5 percent, then there is potential for the whole banking system to raise the money supply by:
a. $11.5 billion. b. $230 billion. c. $115 billion. d. $57.5 billion. e. $575 billion.
Money market mutual funds are accounts that are
a. usually offered by banks. b. do not pay interest income. c. insured by the federal government. d. usually offered by brokerage and insurance firms.
In the above table, what is the average total cost to produce 4 units of output?
A. $20 B. $55 C. $60 D. $30