There is no opportunity cost of obtaining
A) a free good.
B) a scarce good.
C) any good a person acquires, as long as they value it highly enough.
D) any good a person acquires, as long a they think it is worth the effort.
A
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The relationship between x and y in the above figure is
A) positive with an increasing slope. B) positive with a decreasing slope. C) negative with an increasing slope. D) negative with a decreasing slope.
Consider Jen, a consumer with preferences U(H,F) = F1/3H2/3, where H is the quantity of housing and F is the quantity of food (per month)
Suppose Jen has a stipend of $600/month which she uses to purchase food at a price of $1/unit and housing at a price of $10/unit. a. Compute Jen's utility-maximizing bundle of goods. b. Suppose that Jen's employer subsidizes housing by paying 50% of her total housing costs, thereby effectively lowering the price Jen pays for housing to $5/unit. Compute Jen's new optimal consumption bundle. c. How much does Jen's employer pay in total for this subsidy? How much utility does Jen enjoy with this subsidy (compute her utility at the optimal bundle). d. Suppose that her employer simply gave Jen the dollar cost you found in (c) as a lump sum (instead of subsidizing housing). Will Jen gain a higher utility from the housing subsidy or the lump-sum equivalent transfer?
A monetary policy target is a variable that
A) the Fed can affect directly. B) equals one of the Fed's main policy goals. C) the Fed has no ability to change. D) the Fed cannot affect directly.
Using the market marginal revenue, firms in a cartel or engaged in tacit collusion should set ________ equal to ________ to maximize profit.
A) marginal revenue; marginal cost B) marginal cost; average total cost C) marginal revenue; average total cost D) price; marginal revenue