If a consumer wishes to maximize satisfaction given limited income and MUx/Px< MUy/Py then the consumer should:
a. do nothing because she/he is in equilibrium.
b. buy more of X and less of Y.
c. buy more of Y and less of X.
d. buy more of both X and Y.
e. buy less of both X and Y.
c
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Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 If Island Bikes charges a single price to all of its customers, then what will be its daily economic profit?
A. $26 B. $36 C. $27 D. $33
Which of the following describe the United States' unemployment rate over the last 80 years?
i. The unemployment rate has decreased each year since the Great Depression. ii. The unemployment rate has averaged about 5.7 percent since 1929. iii. Job creation due to defense spending and consumer spending in the 1960s drove the unemployment rate to one of its lowest level. A) i and ii only B) ii and iii only C) i, ii and iii D) i only E) i and iii
Refer to Table 10-2. If Keira maximizes her utility, how many units of each good should she buy?
A) 6 cups of soup and 2 sandwiches B) 1 cup of soup and 5 sandwiches C) 4 cups of soup and 3.5 sandwiches D) 3 cups of soup and 4 sandwiches
How does consumer use (transactions) compare between credit and debit cards?
A. Credit cards are used for substantially more transactions than debit cards. B. Debit cards are used for substantially more transactions then credit cards. C. Both cards are used for about the same number of transactions.