Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. If the price per unit of good X is $3, the consumer would maximize utility by consuming
A. 10 units of Y.
B. 25 units of Y.
C. 21 units of Y.
D. 30 units of Y.
Answer: C
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Marginal utility theory predicts that a rise in the price of a banana results in
A) the demand curve for bananas shifting rightward. B) the demand curve for bananas shifting leftward. C) a movement upward along the demand curve for bananas. D) a movement downward along the demand curve for bananas.
Because most asset yields are affected in a systematic way by economic conditions, most securities in portfolios
A) have a covariance greater than zero. B) have negative yields. C) have covariance greater than one. D) increase in risk as new assets are added.
An import quota is
A) a quantity restriction. B) a price ceiling. C) a price floor. D) something imposed on agricultural goods grown by American farmers.
This country’s oil is mostly in sand deposits.
a. Canada b. US c. Mexico d. China