The price of bread is $1.50 per pound and the price of butter is $3 per pound. Steve has an income of $30, with which he buys 4 pounds of bread. How many pounds of butter does he buy, assuming he buys nothing else and he maximizes his utility?
A. 8
B. 12
C. 4
D. There is not enough information to answer the question.
A. 8
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The term "depository institution" refers to
A) savings and loan associations only. B) commercial banks, credit unions, and savings and loan associations. C) credit unions only. D) commercial banks only.
Which of the following has been observed in the developing countries during 1990-2016?
A. The East Asian countries like South Korea, Singapore, and Taiwan reported negative growth rates. B. Countries like China and Vietnam reported positive but low growth rates. C. Several of the countries in Eastern Europe and Central Asia that were making a transition from a centrally planned economy to a market-based economy reported a decline in the per capita income. D. The dispersion in the growth rates of the developing countries has been negligible during 1990-2016.
Economic analysis is a tool that
A) aids all decision making. B) helps us understand why people make mistakes. C) helps us forgive selfish people. D) makes everyone rich.
If the quantity of bagels demanded decreases by 8% when the price of croissants decreases by 16%, the cross-price elasticity of demand between bagels and croissants is
A. 2. B. 0.5. C. -2. D. -5.