Billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. In order to maximize total utility, Billie should
a. buy three times as many soccer balls as pairs of jeans.
b. buy three times as many pairs of jeans as soccer balls.
c. buy both items until the marginal utility of soccer balls is three times the marginal utility of a pair of jeans.
d. buy both items until the marginal utility of a pair of jeans is three times the marginal utility of soccer balls.
d
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In the short-run, a rise in the money wage rate leads to
A) an increase in the price level and an increase in real GDP. B) an increase in the price level and a decrease in real GDP. C) an increase in the price level, but no change in real GDP. D) no change in the price level, but an increase in real GDP.
What is TRUE about every point along a production possibilities frontier?
A) Both people are maximizing utility. B) It is impossible to increase production of either good. C) All allocations are efficient. D) It includes some unattainable points.
According to the rational expectations school,
a. the Phillips curve is upward sloping in the short run and downward sloping in the long run b. both for the short and long runs, the Phillips curve is horizontal c. both for the short and long runs, the Phillips curve is vertical d. there is no Phillips curve e. Keynesians assume irrational expectations behavior on the part of firms and individuals that allows them, erroneously, to conclude that there are no trade-offsbetween inflation and unemployment
Which of the following is an example of technological change?
A. The personal computer B. Starbucks coffee C. Filet mignon D. Ralph Lauren clothing