Suppose a glass of orange juice has a price of $2 and a glass of soft drink has a price of $1 . If the consumer is maximizing utility,
a. juice must have higher MU than soda drink
b. the soft drink must have higher MU than juice
c. both must have equal MU
d. consumers would buy more soda drink than orange juice
e. the consumer would buy twice as much orange juice as soft drink
A
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Refer to Mexico and Japan. What is the cost of producing one unit of food in Japan?
a. 2 bolts of cloth per bushel.
b. 4/3 bolts of cloth per bushel.
c. 3/4 bolts of cloth per bushel.
d. none of the above.
A furniture maker used to buy its wood, but has now bought the lumber company. How does this impact GDP?
A) It reduces it. B) It does not change. C) It increases it. D) We cannot tell.
Suppose oil prices suddenly begin to rise and the Fed announces that the increase in oil prices are not expected to generate excessive inflation
If the Fed is incorrect in its assumption that rising oil prices will not generate excessive inflation and the inflation rate increases before the Fed takes corrective action, then other things equal, this would result in ________ and ________. A) the IS curve shifting to the right; a movement up the Phillips curve B) the IS curve shifting to the left; a movement down the Phillips curve C) the MP curve shifting up; a movement up the Phillips curve D) the MP curve shifting down; a movement down the Phillips curve
Calculating the value of an economy is more complex than just adding up the value of every single thing that is produced because that would lead to:
A. overcounting, as the value of intermediate products would be counted twice. B. overcounting, as there is a mark-up in everything that is sold. C. undercounting, as most goods are not sold in retail markets. D. undercounting, as only observable markets can be recorded.