If the marginal net utility of beer is a positive number, the consumer should buy more beer in order to maximize utility
a. True
b. False
Indicate whether the statement is true or false
True
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According to the Taylor rule, the Fed should set the target for the federal funds rate equal to the sum of the equilibrium real federal funds rate, the current inflation rate, one-half times the ________, and one-half times the ________
A) interest rate gap; inflation gap B) inflation gap; output gap C) interest rate gap; output gap D) unemployment gap; government-spending gap
Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000 . If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?
a. $10,000. b. $25,000. c. $30,000. d. $45,000. e. $70,000.
A country has a comparative advantage in the good that it can produce
a. at a lower cost in terms of other goods. b. using fewer resources than its trading partner uses. c. at a lower cost than its trading partner can produce. d. using more resources than its trading partner uses.
When the demand for a good is price-elastic at a given output level:
A. total revenue is negative. B. total revenue for the good will increase if its price decreases. C. a large change in price will result in a relatively small change in the quantity demanded. D. an increase in price will lead to an increase in total revenue for firms selling the good.