Fred spends all of his income on two goods: DVDs and downloaded music. If Fred's marginal utility per dollar from DVDs is greater than his marginal utility per dollar from downloaded music, Fred can ________ his total utility by buying ________
A) maximize; more DVDs and more downloaded music
B) increase; more downloaded music and fewer DVDs
C) increase; more DVDs and less downloaded music
D) maximize; fewer DVDs and less downloaded music
C
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Which of the following does NOT decrease aggregate demand in the United States?
A) a decrease in GDP in Germany B) a decrease in government spending C) a decrease in the price of oil D) a decrease in the supply of money
According to behavioral economics, an employee will likely
a. work harder if she is a satisficer and if she believes a coworker is overpaid. b. work harder if she is a satisficer, but work less hard if she believes a coworker is overpaid. c. work harder if she believes a coworker is overpaid, but work less hard if she is a satisficer. d. work less hard if she is a satisficer and if she believes a coworker is overpaid.
Suppose the production function is given by Q = 4K + 6L. What is the average product of capital when 10 units of capital and 5 units of labor are employed?
A. 7 B. 10 C. 5 D. 14
In the case of perfectly elastic supply, the supply curve is:
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.