The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per slice and Homer has $18 to spend on cookies and cake
Homer will consume ________ pounds of cookies and ________ slices of cake. A) 5; 4
B) 4; 5
C) 6; 3
D) None of the above answers is correct.
A
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An employer faces a minimum wage control where it cannot pay its workers any less than $10.25 an hour. The employer knows that the workers value the jobs and are willing to work even at much less. The employer decides to offer them the minimum wage but forces them to buy their uniforms from the employer. This is an example of
a. Tying b. Bundling c. Exclusion d. Fraud
In general, the faster inflationary expectations adjust, the: a. less macro policy can influence unemployment
b. better discretionary policy can be expected to work. c. slower the adjustment of the short-run Phillips curve. d. stronger the case for active policy. e. more effectively a policy can influence unemployment.
Which of the following statements is false?
A) A call option will sell for a fraction of the cost of the stock. B) A futures contract can be written for a commodity (such as wheat), or for a currency. C) A futures contract gives the owner the right, but not the obligation, to buy or sell a commodity at a specified price on a given future date. D) The specified price at which an option gives the owner the right to buy a stock at is called the stick price.
If the price is greater than the average variable cost, the firm should produce
A. where AVC is minimized. B. the loss the firm makes from shutting down (its TFC) is greater than the loss they make as a result of producing. C. where MC=MR. D. the loss the firm makes from shutting down (its TFC) is less than the loss they make as a result of producing.