Some people view cosmetic surgery (c) and facials (f) as perfect substitutes as measured by the utility function U(c,f) = 5c + 10f. What is the marginal utility of cosmetic surgery?
A) MU = 5.
B) MU = 10.
C) MU = 15.
D) None of the above.
A
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In the figure above, the demand is unit elastic
A) at the point where the price is $3.00 per cup B) at the point where the price is $2.00 per cup C) at the point where the price is $4.00 per cup D) at the point where the price is $2.50 per cup E) at all points along the demand curve
Optimization can be achieved using either of two techniques of cost-benefit analysis. Which of the following correctly identifies the techniques?
A) Optimization in levels and optimization in programs B) Optimization in levels and optimization in differences C) Optimization in programs and optimization in frames D) Optimization in differences and optimization in frames
Advocates of higher minimum wages for unskilled labor defend their position by arguing that
A. low-income workers deserve to earn incomes above the poverty level B. higher wages boost worker productivity and efficiency C. higher wages will cause employers to reduce the payroll but the total wages of remaining workers will be higher D higher wages induce more workers into the labor market and thus reduce unemployment E. it is more efficient for the private sector to provide a higher wage than for the government to provide transfer payments to low-income workers
In finance, the leverage ratio refers to:
A. ratio of assets it has relative to its equity. B. using borrowed money to pay for investments. C. how a firm decides to borrow funds that it doesn't have. D. ratio of assets it has relative to debt.