If Ellie Mae spends her income on possum and biscuits and the price of possum is three times the price of biscuits, then when Ellie Mae maximizes total utility, she will buy
a. equal quantities of possum and biscuits
b. three times as much possum as biscuits
c. three times as many biscuits as portions of possum
d. biscuits and possum until the marginal utility of possum is three times the marginal utility of biscuits
e. biscuits and possum until the marginal utility of biscuits is three times the marginal utility of possum
D
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The investment by firms in the creation of products not yet available on the market is referred to as:
A) working capital. B) creative capital. C) innovation funds. D) research and development.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Real Domestic GDP b. GDP price index c. Quantity of currency per time period d. Open market operations e. All of the above are exogenous
Adverse selection arises when:
A. buyers and sellers with the same information about the quality of a good or the riskiness of a situation seek each other out. B. buyers and sellers have different information about the quality of a good or the riskiness of a situation. C. people behave in a riskier way because they have incomplete information. D. the wants of both parties are aligned with one another.
The monopolistic ally competitive seller's demand curve will become more elastic the:
A. Larger the number of competitors B. Greater the degree of product differentiation C. More significant the barriers to entry D. Smaller the number of competitors