Keesha consumes only milkshakes and burgers. At her consumer equilibrium, which of the following is TRUE when Keesha can buy any portion of a unit of a milkshake or burger?
A) The marginal utility per dollar from a milkshake will exceed the marginal utility per dollar from a burger if she likes burgers more than milkshakes.
B) The marginal utility per dollar from a burger will exceed the marginal utility per dollar from a milkshake if she likes burgers more than milkshakes.
C) The marginal utility per dollar will be the same for each good.
D) The marginal utility will be the same for each good.
C
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If the Mexican government wants to keep the peso overvalued against the dollar, it will need to:
A) sell both dollars and pesos. B) buy both dollars and pesos. C) sell pesos and buy dollars. D) buy pesos and sell dollars.
Which of the following is NOT an alternative rule for monetary policy?
A) an inflation rate targeting rule B) a natural unemployment rate targeting rule C) a monetary base instrument rule D) a nominal GDP targeting rule E) a money targeting rule
What is the "Hotelling rule" for a monopolist?
A) Price minus marginal cost must rise at exactly the rate of interest. B) Price plus marginal cost must rise at exactly the rate of interest. C) Marginal revenue minus marginal cost must rise at exactly the rate of interest. D) Marginal revenue and marginal cost must be independent of the rate of interest.
If Robinson makes 40 purses or 5 wallets per week, and Chamberlin makes 16 purses or 2 wallets per week, then
A) neither Robinson nor Chamberlin stands to gain by specialization and exchange.
B) both would gain through exchange if Robinson specialized in purses, Chamberlin in wallets.
C) both would gain through exchange if Robinson specialized in wallets, Chamberlin in purses.
D) only Robinson would gain through specialization and exchange.