Ellen is spending her entire income on goods X and Y. Her marginal utility from the last units of X and Y that she consumes is 25. Ellen's utility is only maximized if
A. the price of good X is twice that of good Y.
B. the price of good Y is twice that of good X.
C. the prices of X and Y are the same.
D. We cannot determine whether Ellen is maximizing her utility.
Answer: C
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What will be an ideal response?
Refer to Figure 28-6. If firms and workers have rational expectations, an expansionary monetary policy will cause the short-run equilibrium to move from
A) point B to point A. B) point B to point C. C) point C to point A. D) point A to point B. E) point A to point C.
A firm gets less efficient as it gets bigger, if it is experiencing:
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An aggregated demand curse is created by summing the _________ on the individual demand _________.
Fill in the blank(s) with the appropriate word(s).