A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal utility of product Beta is 40. The price of product Alpha is $5 and the price of product Beta is $10. The utility-maximizing rule suggests that this consumer should:

A $100 bill is a

A) commodity money. B) fiat money. C) representative commodity money. D) partially representative commodity money.

A trade-off between aggregate output and inflation

A) is theoretically possible, but has never been observed in practice. B) may exist in the short run, but not in the long run. C) may exist in the long run, but not in the short run. D) exists in both the short run and the long run.

If demand is perfectly inelastic

A) then a 1% increase in price leads to a fall in quantity of greater than 1%. B) then a 1% increase in price leads to a fall in quantity of less than 1%. C) then a 1% increase in prices then quantity demanded falls to zero. D) then a 1% increase in price has no effect on quantity demanded.

Federal subsidies to higher education benefit

a. only the student b. only universities c. both universities and students d. neither universities nor students