Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/4 . To maximize total utility, she should
a. buy more pizzas and fewer blouses
b. buy fewer pizzas and more blouses
c. continue to buy the same quantities of pizza and blouses
d. spend more time consuming pizza
e. spend more time buying blouses
A
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The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the U.S. dollar ________ against the Euro and ________ against the Japanese yen
A) depreciated; depreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; appreciated
If an increase in the level of money supply leads to a proportionate increase in prices with no effect on real variables ,we say that
A) the Fisher relationship holds. B) money is neutral. C) money is superneutral. D) money is a medium of exchange.
A decrease in demand will have what effect on equilibrium price and quantity?
a. Price will increase; quantity will decrease. b. Price will decrease; quantity will increase. c. Both price and quantity will increase. d. Both price and quantity will decrease.
The demand schedule for a product shows the relationship between how much of the product buyers are willing and able to buy and the
A. cost of producing the product. B. time period, say, from one month to the next. C. buyers' incomes. D. product's price.