Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda
Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?
Abe is not maximizing his utility because his marginal utility per dollar from pizza does not equal his marginal utility per dollar from soda. Abe should consume more soda (because it provides more satisfaction per dollar) and less pizza.
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If a country's currency depreciates, then its exports will cost ________ abroad and its imports will cost ________ domestically
A) less; less B) less; more C) more; less D) more; more
If there are no interventions by finance ministers or control banks in the international market, then
A) the current account and the capital account must sum to zero. B) the current account will be greater than the capital market. C) the capital market will be greater than the current account. D) the capital market will equal the current account.
While credit cards like Visa are convenient instruments to use in exchange, they are not actually money
Indicate whether the statement is true or false
A share representing a portion of ownership in a corporation:
a. liability b. dividend c. note of Stockholm d. stock e. bond