A utility-maximizing consumer is currently spending all of his/her income on two products, A and B. The MU of the last unit of A consumed is 50, the price of A is $25, and the price of B is $10 . The MU of the last unit of B consumed is:
a. 50.
b. 5.
c. 2.
d. 20.
e. cannot determine from this limited information
d
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The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1575 and two of the competing banks have considered merging. Because the merger would raise the HHI by 55 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger under the condition that HHI does not rise by more than 55 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1575.
Rent controls can cause a. a decline in the quality of housing available for rent
b. the development of a black market to allocate apartments to renters. c. longer search times for renters attempting to locate an apartment. d. all of these are possible results of rent controls.
Which group aids the Board of Governors of the Federal Reserve System in conducting monetary policy?
A. U.S. Treasury B. U.S. Congress C. Federal Advisory Council D. Federal Open Market Committee
A die is rolled. If it lands 1 or 2, the person receives $90. If it 3 or 4, the person receives $30.00. If it lands 5 or 6, the person receives $60. If the person is willing to pay $60 to take this gamble, they must be
a. risk-averse. b. risk-neutral. c. risk-preferring. d. either risk-neutral or risk-preferring (not risk-averse).