Which of the following occur when a person maximizes utility? I. The marginal utility of each good bought is equal. II. The highest level of utility is attained. III. All of a person's budget is spent
A) I and II
B) I and III
C) II and III
D) I, II and III
C
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Price will always exceed marginal cost for the profit-maximizing monopolist, or any price-setter firm for that matter
Indicate whether the statement is true or false
According to the monetarist theory, an increase in government spending would have
a. only weak effects on both output and the price level. b. a weak effect on output with a strong effect on the price level. c. a weak effect on the price level but a strong output effect. d. stronger effects on output if financed with increases in the money supply. e. both a and d.
Kaitlyn purchased one share of Northwest Energy stock for $200; one year later she sold that share for $400 . The inflation rate over the year was 50 percent. The tax rate on nominal capital gains is 50 percent. What was the tax on Kaitlyn's capital gain?
a. $50 b. $75 c. $100 d. $200
If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.007 = 1 yen, but currently the exchange rate is $0.009 = 1 yen, then with flexible exchange rates the dollar price of a yen will __________, and the yen will __________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate