Assume a state of consumer equilibrium. Billiard balls cost $6 and cue balls cost $10. If the marginal utility of a cue ball is 60 utils, what is the marginal utility of a standard billiard ball?
a. 36
b. 40
c. 60
d. 100
a. 36
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The demand curve for foreign exchange is
a. downward sloping. b. upward sloping. c. horizontal because no individual country can influence the price of foreign exchange. d. dependent on the supply of foreign exchange.
The Keynesian consumption function is in an economy C = 10 + 0.8 Yd. When disposable income is €1000, what is total consumption?
(a) 0.8 (b) 800 (c) 810 (d) 0.81
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
The pitfalls of a strict money supply rule can be avoided if the Fed:
A. targets velocity growth. B. targets nominal GDP growth. C. targets money supply growth. D. targets real GDP growth.