Marge buys 5 CDs and 7 DVDs. The marginal utility of the 5th CD and the marginal utility of the 7th DVD are both equal to 30 utils. Can we say that this is the optimal combination of CDs and DVDs for Marge?
A) No. We need to know her preferences for CDs and DVDs.
B) No. For this to be the optimal combination, the total utility from her purchase of CDs needs to equal the total utility from her purchase of DVDs.
C) No. If this was the optimal combination, the marginal utility per dollar of the 5th CD and the 7th DVD would be equal.
D) Yes.
C
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High interest rates contribute to a lower federal budget deficit.
A. True B. False C. Uncertain
Which of the following situations will cause the demand for U.S. dollars to rise in the foreign exchange market?
a. The price level in the United States rises faster than the price level in the United Kingdom. b. The interest rate in the United Kingdom falls while the interest rate in the United States remains constant. c. The real GDP in the United States grows while the real GDP in the United Kingdom remains constant. d. The tax rate in the United States rises while the tax rate in the United Kingdom does not change.
Which of the following is not a reason for the existence of a monopoly?
a. patents b. marginal-cost pricing c. economies of scale d. trademarks
The Federal Reserve System came into existence with the Federal Reserve Act of
A) 1877. B) 1933. C) 1965. D) 1913. E) 1922.