Suppose that at your current consumption of two goods, A and B, MUA/PA = 25 and MUB/PB = 20. In order to maximize, your utility you should:
A. purchase less of A and more of B.
B. purchase more of A and less of B.
C. leave your spending unchanged.
D. purchase less of A and B.
Answer: B
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When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1 ________ because ________
A) changes only if Bank of America has excess reserves; if the bank does not have excess reserves, the overall effect to M1 is too small to notice B) decreases; checkable deposits are included in M2 but are not included in M1 C) does not change; both currency and checkable deposits are included in M1 D) changes, but the direction of the change cannot be determined; the direction of the change depends on what Bank of America does with the deposit E) increases; both currency and checkable deposits are included in M1
Marginal utility is defined as the
a. extra satisfaction the consumer receives from an extra $1 of income b. total satisfaction a consumer receives consuming goods c. difference between total satisfaction and the extra satisfaction a consumer receives consuming a good d. extra satisfaction a person derives from consuming an additional unit of a good e. ratio of the utility a good provides to the price of that good, i.e., MU = U/P
When differences in land quality and access to marketplaces are very large and population grows rapidly, the conditions are ripe for
a. increasing differential and location rents b. decreasing differential and location rents c. decreasing differential rents and increasing location rents d. increasing differential rents and decreasing location rents e. marginal physical product of land to increase
In the shortrun (specificfactors) model, foreign direct investment is expected to ________ the marginal product of labor and ________ wages in the receiving country.
a. decrease; decrease b. increase; decrease c. decrease; increase d. increase; increase