The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend
Which combination of pizza and Pepsi will maximize Priscilla's utility? A) 3 slices of pizza
B) 2 slices of pizza and 2 cans of Pepsi
C) 3 cans of Pepsi and 1 slice of pizza
D) 1 slice of pizza and 3 cans of Pepsi
B
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According to this Application, the main concern of Greek residents was that
A) the Prime Minister of Greece would be impeached. B) hyperinflation could occur in the economy. C) the country wold switch to a gold standard. D) banks would convert their accounts to drachmas and they would suffer financial losses.
Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the graph of the two variables would be
A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
The aggregate supply curve slopes upward because firms
A. seek to maximize profits and output. B. normally can purchase inputs at fixed prices. C. employ technology, which is always fixed. D. purchase inputs whose prices rise as output rises.
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the excess reserves-checkable deposit ratio is
A) 0.001. B) 0.10. C) 0.01. D) 0.05.