Whenever a consumer purchases good X but not good Y, then:
A. MRSXY ? PX/PY at the chosen bundle.
B. MRSXY ? PX/PY at the chosen bundle.
C. MRSXY = PX/PY at the chosen bundle.
D. MRSXY = - PX/PY at the chosen bundle.
A. MRSXY ? PX/PY at the chosen bundle.
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In the short run, a decrease in aggregate demand will lead to
A) no change in the price level and a decrease in real GDP. B) an increase in the price level and a decrease in real GDP. C) a decrease in the price level and an increase in real GDP. D) an increase in the price level and an increase in real GDP. E) a decrease in the price level and an increase in the unemployment rate.
Does it appear that currency boards make low-inflation policies credible?
What will be an ideal response?
For a resource in a perfectly competitive market, marginal revenue product is equal to the price of the resource
a. True b. False
Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 36 and WR = 25 and the probability of drought is 0.75. What is Brandon's expected utility?
A. 5.75 B. 33.25 C. 11 D. 30.5