If Bobby decides that his marginal utility per dollar spent on vanilla ice cream exceeds his marginal utility per dollar spent on chocolate ice cream, he should then
A) buy more chocolate ice cream and less vanilla ice cream.
B) buy more vanilla ice cream and less chocolate ice cream.
C) buy all the vanilla ice cream he can.
D) never buy chocolate ice cream.
B
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If the firm is using only one variable input, explain why the condition W = MRPL is thesame condition as P = MC
What will be an ideal response?
A shift in tastes toward American goods ________ net exports in the U.S. and causes the IS curve to shift to the ________ in the U.S., everything else held constant
A) decreases; right B) decreases; left C) increases; right D) increases; left
Refer to the above table. For which prices is demand inelastic?
A) in a range of prices below $6.00 B) in a range of prices above $6.00 C) in a range of prices between $5 and $1 D) in a range of prices above $9.00
If the Fed wishes to increase the interest rate, it can do so by
a. selling bonds b. buying bonds c. increasing the money supply d. setting a higher prime lending rate e. encouraging the public to buy bonds