If Lisa spends her income on veggie burgers and pints of soy milk and the price of veggie burgers is three times the price of a pint of soy milk, then when Lisa maximizes her utility she will buy
A) three times as many pints of soy milk as veggie burgers.
B) both goods until the marginal utility of veggie burgers is three times the marginal utility of soy milk.
C) three times as many veggie burgers as pints of soy milk.
D) both goods until the marginal utility of a pint of soy milk is three times the marginal utility of veggie burgers.
B
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When firms in an industry reach an agreement to fix prices, divide up market share, or otherwise restrict competition, they are practicing the strategy of
A. price leadership. B. collusion. C. interindustry competition. D. limit pricing.
If a bank receives an additional deposit of $50,000 and the desired reserve ratio is 20 percent, what is the amount of new loans the bank can make?
What will be an ideal response?
Under a fixed exchange rate system, a central bank's intervention in the foreign exchange market will not affect the domestic money supply
Indicate whether the statement is true or false
When a firm is making a profit-maximizing production decision, which of the following principles of economics is likely to be most important to the firm's decision?
a. The cost of something is what you give up to get it. b. A country's standard of living depends on its ability to produce goods and services. c. Prices rise when the government prints too much money. d. Governments can sometimes improve market outcomes.