Jon is consuming X and Y so that he is spending his entire income and MUx/Px = 8 and MUy/Py = 4. To maximize utility, he should consume
A. the same amount of X and Y since he is already maximizing utility.
B. less X and more Y.
C. less of both X and Y.
D. more X and less Y.
Answer: D
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A voluntary import expansion involves a
A) country agreeing to import more from another country. B) country agreeing to reduce its trade barriers. C) country agreeing to an import quota. D) firm agreeing to expand output.
A tax is imposed on orange juice. Consumers will bear the full burden of this tax if the: a. price elasticity of demand for orange juice equals 1.0. b. demand for orange juice is perfectly elastic
c. demand for orange juice is unit elastic. d. demand curve for orange juice is perfectly inelastic.
Customer discrimination results in
A. a segregated workforce. B. lower wages for the discriminated against worker group. C. a lower output price regardless of who the firm hires. D. lower firm profits. E. All of these are results of customer discrimination.
Checkable deposits are:
A. included in M1. B. not included in either Ml or M2. C. considered to be a near money. D. also called time deposits.