Refer to the table below. If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility?
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4 and the price of product Y is $2. The income of the consumer is $20.
A. 4X and 2Y
B. 3X and 4Y
C. 4X and 3Y
D. 5X and 3Y
B. 3X and 4Y
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In the above table, if the quantity sold by the firm rises from 6 to 7, its marginal revenue is
A) $15. B) $30. C) $90. D) $105.
Which of the following is not one of the three purposes served by money?
A. Serving as a store of value B. Providing a standard of value C. Providing a means for regulators to track economic activity D. Serving as a medium of exchange
Assume the peanut industry, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If demand for peanuts increases and this industry is a decreasing-cost industry, long-run equilibrium will be reestablished at a price
A. equal to $5. B. less than $5. C. greater than $5. D. either greater than or less than $5, depending on the number of firms that enter the industry.
In the Keynesian model, consumption
A. and saving are positively related to income. B. and saving are negatively related to the real interest rate. C. is positively related to the interest rate but negatively related to a temporary change in income. D. is positively related to income but saving is not systematically related to either income or interest rates.