Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn
Total Utilityfrom Multiplex Tickets
Total Utilityfrom Video Rentals
Total Utilityfrom Popcorn
1 movie (30 utils)
1 video (14 utils)
1 bag (8 utils)
2 movies (54 utils)
2 videos (24 utils)
2 bags (13 utils)
3 movies (72 utils)
3 videos (30 utils)
3 bags (15 utils)
4 movies (84 utils)
4 videos (32 utils)
4 bags (16 utils)
In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. In the consumer equilibrium, what is the marginal utility per dollar for each of the three goods?
A. 5 utils per dollar.
B. 9 utils per dollar.
C. 13 utils per dollar.
D. 22 utils per dollar.
Answer: A
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A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Activists and nonactivists both believe that
a. the self-corrective mechanism of a market economy works quite well. b. macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth. c. discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle. d. policies that stimulate aggregate demand can reduce the long-term rate of unemployment.
Which statement is true?
A. Most poor people are black. B. Most poor people are Hispanic. C. About one child in six lives in poverty. D. Old people have a higher poverty rate than children.
Rising interest rates can cause crowding out, but they are also the result of crowding out.
Answer the following statement true (T) or false (F)