Daniel enjoys both soda and pizza, allocating his purchases across these two goods so that his utility is maximized. If Daniel receives one-third as much utility from the last can of soda as from the last slice of pizza, we can say that:
a. the price of pizza is one-third that of soda.
b. the price of pizza is equal to that of soda
c. the price of pizza is twice that of soda.
d. the price of pizza is three times that of soda.
d
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The most commonly expressed arguments for protection tend to be largely invalid
Indicate whether the statement is true or false
Which of the following occurs when insurance makes a person more likely to engage in risky behavior?
a. lemon problem b. moral hazard c. adverse selection d. risk selection
Research has shown that voters are more likely to turn out in elections with ________ electorates and when the election is likely to be ________.
A. large; not very competitive B. small; not very competitive C. small; very competitive D. large; very competitive
An increase in the rate of interest paid on reserves would be an example of:
A. expansionary policy that increases the demand for reserves and reduces short-term interest rates. B. contractionary policy that increases the demand for reserves and raises short-term interest rates. C. expansionary policy that increases the demand for reserves and raises short-term interest rates. D. contractionary policy that reduces the supply of reserves and raises short-term interest rates.