$100 is to be divided among two individuals—Mary and Jenna. Which of the following allocations is Pareto efficient?
A) Mary receives $45, and Jenna receives $45.
B) Mary receives $20, and Jenna receives $75.
C) Mary receives $1, and Jenna receives $99.
D) Mary receives $90, and Jenna receives $9.
C
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A single-price monopolist produces closer to the competitive level than a discriminating monopolist
Indicate whether the statement is true or false
New Keynesian theorists argue that
A) price and wage adjustments in response to policy changes often overcompensate and cause further price disruptions. B) prices and wages may not be free to adjust in response to policy changes. C) unions and big business have considerable power and often choose not to change wages and prices so as to deliberately offset policy changes enacted by the government. D) the Fed and the Congress rarely do what they say they will do, so one should never listen to what they say. E) new classical rational expectations theories about how expectations are formed are completely wrong.
Unit banks are:
A. more numerous in the United States than they were in previous decades. B. banks with no branches. C. commercial banks that have combined into one unit with an investment bank. D. no longer permitted to exist in the United States.
Sanjay is consuming X and Y so that he is spending his entire income and MUx/Px = 8 and MUy/Py = 14. To maximize utility, he should consume
A. the same amount of X and Y since he is already maximizing utility. B. less X and more Y. C. less of both X and Y. D. more X and less Y.