Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. The consumer should purchase more bananas and fewer apples in order to maximize utility
a. True
b. False
Indicate whether the statement is true or false
True
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All of the following observations concerning the elasticity formula are true except
A. the changes with which it deals is measured as a percentage change. B. each of the percentage changes is calculated in terms of the average values. C. the calculation considers both positive and negative signs. D. each percentage change is taken as an “absolute value.”
The supply curve of a price-taker firm in the short run is the
a. firm's average variable cost curve. b. portion of the firm's average total cost curve that lies above average variable cost curve. c. portion of the firm's marginal cost curve that lies above average variable cost curve. d. firm's marginal revenue curve.
According to the classical economists, if there were substantial unemployment, there would be a fall in _____, _____, and _____.
Fill in the blank(s) with the appropriate word(s).
If the Bank of Canada buys government securities from the chartered banks, which of the following transactions take place?
What will be an ideal response?