Lisa is spending all of her income on compact discs and downloadable games for her smart phone. She finds that the marginal utility from the last compact disc she buys is 30 and the marginal utility from the last downloadable game is 10
The price of a compact disc is $15 and the price of a downloadable game is $5. Lisa should A) increase her consumption of compact discs.
B) increase her consumption of downloadable games.
C) not change her consumption of downloadable games and compact discs.
D) decrease the price of downloadable games.
C
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Fannie Mae and Freddie Mac:
a. Are government sponsored entities (GSE) b. Have a mandate to develop a secondary market in U.S. mortgages. c. Suffered severe economic losses and are now under conservatorship. d. All of the above.
A risk-averse person has
a. a utility function whose slope gets flatter as wealth rises. This means they have increasing marginal utility of wealth. b. a utility function whose slope gets flatter as wealth rises. This means they have diminishing marginal utility of wealth. c. a utility function whose slope gets steeper as wealth rises. This means they have increasing marginal utility of wealth. d. a utility function whose slope gets steeper as wealth rises. This means they have diminishing utility of wealth.
Which of the following would be most likely to cause the per capita income of less-developed countries to rise?
A. development of strong labor unions B. more rapid population growth C. investment expenditures that enhance the human capital of labor force participants D. an international minimum wage law
A tariff will typically
A. reduce the price, net of the tariff, that is received by sellers and increase the price paid by consumers. B. increase the price paid by consumers. C. reduce the price, net of the tariff, that is received by sellers. D. increase the price, net of the tariff, that is received by sellers.