If Arnold thinks his last dollar spent golfing yields less satisfaction than the last dollar spent on movies, and Arnold is a utility-maximizing consumer, he should
a. golf more so that the total satisfaction from this activity will increase
b. spend less on movies so that the marginal satisfaction from expenditures in this area will increase
c. golf less and spend more on movies
d. eliminate golfing from his schedule
e. golf more since it costs less
C
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If the price level is 2, real GDP is $50 billion, and the quantity of money is $4 billion, then velocity is
A) 8. B) 4. C) 10. D) 25. E) 12.5.
Miguel, Maria, and Marcos all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Miguel values the benches at $20, Maria at $30, and Marcos at $40 . The park benches and labor for installation cost $100 . If Miguel, Maria, and Marcos are the only residents who value the benches, what
should the neighborhood association do? a. Install the park benches because people like places to sit. b. Install the park benches because the benefits outweigh the costs. c. Do not install the park benches because the costs outweigh the benefits. d. Do not install the park benches to prevent the Tragedy of the Commons problem of overuse.
Transfer pricing is a strategy that may be used by MNEs to ________.
A) reduce consolidated corporate income taxes B) partially finance a subsidiary in another country C) transfer funds from a subsidiary to the parent corporation D) all of the above
When there is a stock market boom, stockholders have capital losses.
Answer the following statement true (T) or false (F)