Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice cream costs $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60, and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Who can afford to purchase 8 gallons of ice cream and 5 paperback novels?
a. Karen, Tara, and Chelsea
b. Karen only
c. Tara and Chelsea but not Karen
d. none of the women
b
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According to the text, what explains why a firm would produce different brands of an essentially identical (or highly close-substitute) good? With different brands, the firm
a. creates higher productivity b. increases its market share c. better satisfies demand d. increases the effectiveness of its advertising e. lowers the cost structures of each brand so that it becomes more efficient
Recently, Lisa's wealth increased by $500 . If her wealth were to increase by another $500 in the near future, then her utility would increase, but not by as much as it increased with the recent increase to her wealth. Based on this information, Lisa's utility function
a. and marginal utility function are both upward sloping. b. and marginal utility function are both downward sloping. c. is upward sloping and her marginal utility function is downward sloping. d. is downward sloping and her marginal utility function is upward sloping.
(Last Word) The Assistant U.S. Attorney General in charge of prosecuting financial crimes did which of the following in response to HSBC bank's years of money laundering and helping firms and individuals cheat on their taxes?
A. Imposed fines on HSBC and prosecuted key executives so as to diminish moral hazard in the financial services industry. B. Filed an antitrust lawsuit so as to break up HSBC without disrupting the financial system. C. Imposed only modest fines on HSBC so as not to destabilize the bank and the financial system. D. Imposed sanctions based on the provisions of the 2010 Wall Street Reform and Consumer Protection Act.
If the Chinese Yuan devalues against the US dollar, then
a. Both the US exporters and Chinese importers would benefit b. The US exporters would benefit while the Chinese importers would be hurt c. The US exporters would be hurt while the Chinese consumers would benefit d. Both the US exporters and Chinese importers would be hurt