Marginal rate of substitution between X and Y is
a. total utility of X divided by total utility of Y.
b. marginal utility of X divided by marginal utility of Y.
c. total utility of X divided by marginal utility of Y.
d. none of the above.
b. marginal utility of X divided by marginal utility of Y.
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In the market for a pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each must pay for a pair of shoes is $65. What is the combined amount of consumer surplus of Jena and Jane?
A. $10 B. $20 C. $30 D. $160
If a price hike of 5 percent increases the quantity demanded of another good by 2 percent, the goods must be ________ and the cross elasticity of demand equals ________
A) substitutes; 0.40 B) substitutes; 2.5 C) complements; 0.40 D) complements; 2.5
Compared to perfect competition, a monopoly in the long run
A. produces a larger output. B. charges a higher price. C. produces the minimum average cost. D. All of these responses are correct.
The reserves of financial institutions:
a. Are the largest liability in a financial institution's balance sheet. b. Are assets that financial institutions try to maximize. c. Are assets that financial institution's try to keep at the legal limit. d. Are made up mainly of government securities and high quality corporate bonds. e. Include the liability called "Borrowing from the central bank."