If Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe
A) should buy more oranges and fewer apples. B) is maximizing total utility.
C) should buy more apples and fewer oranges. D) should buy fewer oranges and fewer apples.
C
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"Inflation reduces the velocity of money because people reduce their money holdings." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Refer to Figure 12-2. What is the amount of profit if the firm produces Q2 units?
A) It is equal to the vertical distance c to g multiplied by Q2 units. B) It is equal to the vertical distance g to Q2. C) It is equal to the vertical distance c to Q2. D) It is equal to the vertical distance c to g.
Suppose the national government increased taxes by $20 billion. The net effect on the banking system would be to:
a. Reduce bank reserves by $20 billion and reduce bank deposits by $20 billion. b. Increase bank reserves by $20 billion and increase bank deposits by $20 billion. c. Increase government checking accounts in the banking system by $20 billion and reduce the public's checking accounts there by $20 billion. d. Decrease government checking accounts in the banking system by $20 billion and increase the public's checking accounts there by $20 billion. e. Increase government checking accounts in the banking system by $20 billion and increase the public's checking accounts there by $20 billion.
Total cost includes:
A. the amount the firm spends on all inputs that go into the production of a good or service. B. one-time expenses and ongoing expenses. C. forgone opportunity costs. D. All of these are true.