Assume that A and B are both priced at $1 per unit and that Mary has $10 to spend on A and B. She buys 6 units of A and 4 units of B. The marginal utility of the final unit of A bought is 12 and that of B is 8. This indicates that:
A. Mary's consumption is in equilibrium
B. Given another dollar, Mary should buy an additional unit of B
C. In order to maximize utility, Mary should buy more of B and less of A
D. In order to maximize utility, Mary should buy more of A and less of B
D. In order to maximize utility, Mary should buy more of A and less of B
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Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well
Measuring food on the horizontal axis, the joint production possibility frontier has a horizontal intercept of A) 10. B) 20. C) 30. D) 50.
An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
a. the higher the dollar price of Korean won, the more won will be demanded. b. the higher the dollar price of Korean won, the fewer won will be supplied. c. the lower the dollar price of Korean won, the more won will be demanded. d. the lower the dollar price of Korean won, the fewer won will be supplied. e. the Korean economy is stronger than the Canadian economy.
A lumpy input is one that
a. is infinitely divisible b. is not smooth c. can only be adjusted in large amounts d. can not be legally employed e. can be easily adjusted in small amounts
Susan is planning to invest in one of four stock portfolios, and her financial advisor has given her details regarding the risk associated with each portfolio. Which of the following portfolios would you expect to have the lowest average annual rate of return?
a. A portfolio with a standard deviation of 3%. b. A portfolio with a standard deviation of 6%. c. A portfolio with a standard deviation of 9%. d. A portfolio with a standard deviation of 12%.