Macroeconomics involves the study of the decision-making of individual firms or individuals
Indicate whether the statement is true or false
FALSE
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Refer to the scenario above. In the dominant strategy equilibrium, the payoff to Firm A is ________
A) $1.2 million B) $3.0 million C) $3.5 million D) $2.5 million
In the above figure, the economy is at point A. Then the price level rises to 110 while the money wage rate remains constant. Firms will be willing to supply output equal to
A) less than $16.0 trillion. B) $16.0 trillion. C) more than $16.0 trillion. D) Without more information, it is impossible to determine which of the above answers is correct.
Michael spends $10 a month on Pez dispensers and Superman action figures. His marginal-utility-to-price ratio for the Pez dispensers is 40, while his marginal-utility-to-price ratio for Superman action figures is 47 . Explain why Michael is not maximizing his utility and how can he change his behavior to increase his utility?
Mutual funds
a. provide diversification. Shareholders assume all of the risk associated with the mutual fund. b. provide diversification. Government insurance eliminates the risk of mutual fund shareholders. c. do not provide diversification. Shareholders assume all of the risk associated with the mutual fund d. do not provide diversification. Government insurance eliminates the risk of mutual fund shareholders.