After browsing his cabinets to see what meals he can make, Ken is deciding whether to make nachos or spaghetti for dinner. If Ken makes spaghetti, we can conclude:
A. Ken doesn't like nachos.
B. Ken prefers nachos over spaghetti.
C. Ken will get more utility from making spaghetti for dinner than nachos.
D. None of these is true.
C. Ken will get more utility from making spaghetti for dinner than nachos.
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Everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on Treasury securities when
A) income tax rates are lowered. B) income tax rates are raised. C) municipal bonds become more widely traded. D) corporate bonds become riskier.
The Specialty Cake Store, a monopolistically competitive firm, is producing 200 decorated cakes per day and selling each cake for $17. At that production level, ATC is $20, AVC is $15, AFC is $5, and both MR and MC are $8. This firm should
A. shut down and produce zero cakes and just pay fixed costs. B. continue to produce 200 cakes, as price is greater than AVC. C. decrease output to the point where price equals average total cost. D. increase output to the point where price equals marginal cost.
If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $8 d. just under $7
In every age group, average income in the United States increases with education
a. True b. False