At the utility maximization level, the marginal utility of a sandwich to a consumer is 60 utils, while the marginal utility of a burger is 30 utils. If the price of the sandwich is $20, the price of the burger is $15
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose Japan is currently running a current account surplus. The most effective way of eliminating this current account surplus would be to temporarily ________ government purchases and ________ the domestic money supply
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
For macroeconomics, banks
A) are similar to other firms. B) can be abstracted away. C) play a key role. D) are similar to households.
Which of the following is not a reason why wages respond slowly to changes in output?
a. Many labor contracts specify wages for up to three years. b. The process of wage setting in large corporations is slow moving. c. Frequent wage changes can reduce worker morale and reduce productivity. d. Firms benefit from having a reputation of paying stable wages. e. The labor supply and demand curves move rapidly to clear labor markets.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.