Complete the table below to show how much of A the consumer will buy each week at each of the two possible prices of A. Also, show how much B will be demanded when the price of A changes
A consumer has an income of $24 to spend each day. The only two goods the consumer is interested in purchasing are goods A and B. The marginal-utility schedules for these two goods are shown in the table below. The price of B does not change and is $2. The marginal utility per dollar from B is also shown in the table. But the price of A varies as shown in the table. The marginal utility per dollar from A when the price of A is $8 and $4 is shown in the following table.
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During the 1990s, Japan experienced periods of deflation and very low nominal interest rates, approaching zero percent. Why would lenders of money agree to a nominal interest rate of almost zero?
What will be an ideal response?
Suppose at the current level of labor used, MRP = $100 and MFC = $150. To maximize profits, the firm should
A) hire more labor. B) reduce the level of labor. C) maintain the current level of labor. D) expand production.
Technological progress should lead to
A. a rightward shift in the investment function. B. an unchanged investment function. C. a downward movement along the investment function. D. less saving.
Some corporate governance experts believe that serving on a company's board of directors for an extended length of time diminishes that member's independence from the company's CEO. If this is true, it would tend to
A) reduce the principal-agent problem. B) increase the principal-agent problem. C) be in the best interest of shareholders. D) have no impact on the company's performance, since the CEO is only one member of top management.