Mihaela has $10 to spend. Assuming hamburgers cost $2 and milkshakes cost $1, what combination of hamburgers and milkshakes offers the highest total utility?
a. 5 hamburgers and 0 milkshakes
b. 4 hamburgers and 2 milkshakes
c. 3 hamburgers and 4 milkshakes
d. 2 hamburgers and 6 milkshakes
b. 4 hamburgers and 2 milkshakes
You might also like to view...
Describe the effects of an oil price shock in a Keynesian model; why are such supply shocks difficult to handle using macroeconomic stabilization policies?
What will be an ideal response?
The following provides data for an economy in a certain year. Consumption expenditures$1,000Imports$600Government purchases of goods and services$700Construction of new homes and apartments$500Sales of existing homes and apartments$600Exports$500Government payments to retirees$200Household purchases of durable goods$300Beginning-of-year inventory$500End-of-year inventory$600Business fixed investment$300Given the data, how much did households spend on nondurables and services?
A. $300 B. $1,000 C. $700 D. $1,300
The MR = MC rule can be restated for a purely competitive seller as P = MC because:
A. each additional unit of output adds exactly its price to total revenue. B. the firm's average revenue curve is downsloping. C. the market demand curve is downsloping. D. the firm's marginal revenue and total revenue curves will coincide.
The Smoot-Hawley Act:
A. bound the world's nations to a gradual process of tariff reduction. B. established very high tariffs on goods imported to the United States. C. exempted American exporters from the Sherman Antitrust Act. D. established the reciprocal trade agreements program.