Refer to the above table. How many units of the two products will the consumer buy, to get maximum utility?
The table below shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18.
A. 1 of X and 4 of Y
B. 2 of X and 2 of Y
C. 2 of X and 3 of Y
D. 3 of X and 4 of Y
C. 2 of X and 3 of Y
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A reserve requirement set by the Federal Reserve is the:
A. minimum amount of currency banks must hold in their vaults. B. maximum amount of currency banks are allowed to hold in their vaults. C. minimum ratio of reserves to bank deposits that commercial banks are allowed to maintain. D. maximum ratio of reserves to bank deposits that commercial banks are allowed to maintain.
The costs incurred even when no output is produced are called
A) fixed costs. B) variable costs. C) external costs. D) marginal costs.
If the inflation rate for a given year is 5 percent, then $1.00 in the previous year will buy goods worth approximately $0.95 this year
a. True b. False Indicate whether the statement is true or false
During an extended inflationary period, the money rate of interest will usually be
a. lower than the real rate of interest. b. equal to the real rate of interest. c. greater than the real rate of interest. d. inversely related to changes in the inflation rate.