The following table indicates Sharona's marginal utilities from the additional consumption of goods A and B. The first and third columns of the table show the quantities of goods A and B consumed. The second and the fourth columns show Sharona's marginal utilities from each additional unit of goods A and B consumed. The price of A is $2 per unit and the price of B is $4 per unit. If Sharona's budget is $12, then which of the following combinations would maximize her total utility? QA MUA QB MUB 1 24 1 48 2 22. 2 44 3 18. 3. 36 4. 12. 4. 24
a. ?1 unit of A; 4 units of B
b. ?4 units of each good
c. ?4 units of A; 1 unit of B
d. ?2 units of each good
e. ?0 units of A; 3 units of B
Ans: d. ?2 units of each good
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) After immigration occurs, total business income in country B:
A. Increases by $475M
B. Increases by $50M
C. Decreases by $50M
D. Decreases by $475M
Which of the following would cause the demand curve for rice to shift to the left?
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The two basic markets shown by the simple circular flow model are
A. product and resource. B. capital goods and consumer goods. C. free and controlled. D. household and business.
Refer to the demand and supply equations. What are the equilibrium price and quantity?
What will be an ideal response?