How does the introduction of cognition into a consumer's choice between healthy and unhealthy food affect marginal utility per dollar and the quantity of healthy and unhealthy food consumed? Assume utility is maximized.
What will be an ideal response?
The marginal utility per dollar will decrease for both the healthy and unhealthy food. The quantity of healthy food consumed will increase and the quantity of unhealthy food consumed will decrease.
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Suppose a tax equal to the value of the external cost of producing car batteries is imposed by government on all car battery manufacturers. All of the following will result from the tax except
A) an increase in demand for car batteries. B) a decrease in the market supply of car batteries. C) an increase in the equilibrium price of car batteries. D) a decrease in the equilibrium quantity of car batteries produced and consumed.
The aggregate demand curve is Y = 15 - 0.2? when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________
A) autonomous tightening B) automatic adjustment C) autonomous easing D) to increase autonomous spending E) none of the above
Continued economic growth is desirable if it means that the standard of living continues to increase.
Answer the following statement true (T) or false (F)
Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain
What will be an ideal response?