Suppose Jack purchases four rolls of brown paper for which he receives 100 units of total utility and two quarts of vinegar for which he receives 50 units of total utility. Assuming Jack maximizes utility, if the price of brown paper is $2 a roll, the cost of two quarts of vinegar must be:
A. $1 a quart.
B. $0.50 a quart.
C. $2 a quart.
D. It is impossible to tell.
Answer: D
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Use the following diagram to answer the next question.Which of the following would cause a move from MS1 to MS2?
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A cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment is a(n)
A. "in kind" payment. B. budget deficit. C. dividend payment. D. transfer payment.
The New Deal was the economic program of
A. Herbert Hoover. B. Franklin D. Roosevelt. C. Dwight D. Eisenhower. D. Lyndon B. Johnson.
The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the number of suppliers would be shown as a movement from point a to a point such as
A) none of the points that are illustrated. B) point b. C) point c. D) point d.