The consumer optimum (for two goods, A and B) is reached when
A) TUA = TUB.
B) MUA = MUB.
C) TUA/PA = TUB/PB.
D) MUA/PA = MUB/PB.
Answer: D
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How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 1.60 dollars per British pound?
A) 38.125 British pounds B) 28.125 British pounds C) 48.125 British pounds D) 58.125 British pounds E) 18.125 British pounds
Refer to Figure 8.3. Holding other variables constant, a decrease in income taxes accompanied by an increase in the skill level of workers will result in a
A) shift from curve D1 to curve D2 and a shift from curve S1 to curve S2. B) shift from curve D2 to curve D1 and a shift from curve S1 to curve S2. C) shift from curve D1 to curve D2 and a shift from curve S2 to curve S1. D) shift from curve D2 to curve D1 and a shift from curve S2 to curve S1.
The smaller the reserve ratio the:
A. less a bank can loan out. B. smaller is the money multiplier. C. less money is created in the economy. D. greater the money is created in the economy.
Consumer spending represents about what fraction of total spending in the economy?
a. one-fifth b. two-thirds c. one-third d. two-fifths e. three-fourths