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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Refer to Table 26-6. Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
If the Fed wants to keep real GDP at its potential level in 2017, should the Fed use a contractionary or expansionary policy? Should it raise or lower its interest rate target? How should it conduct open market operations to achieve its goal?
An aircraft company has signed a contract to deliver a plane 3 years from now. The price they will receive at the end of 3 years is $20 million. If the firm's cost of capital is 6%, what is the present value of this payment?
What will be an ideal response?
If the random walk theory is correct, then is there any way to "beat the market"?
What will be an ideal response?
Each of the following conditions, except one, must be satisfied in a perfectly competitive labor market. Which is the exception?
a. There are a large number of buyers of labor services. b. Wages are the sole source of household income. c. There are no barriers to entering the market. d. There are a large number of sellers of labor services. e. All workers appear the same to buyers of labor services.