Monica consumes only goods A and B
Suppose that her marginal utility from consuming good A is equal to 1/Qa, and her marginal utility from consuming good B is 1/Qb. If the price of A is $0.50, the price of B is $4.00, and the Monica's income is $120.00, how much of good A will she purchase?
A) 0
B) 12
C) 24
D) 48
E) 120
E
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The prohibitive tariff is a tariff that
A) is so high that it eliminates imports. B) is so high that it causes undue harm to trade-partner economies. C) is so high that it causes undue harm to import competing sectors. D) is so low that the government prohibits its use since it would lose an important revenue source. E) is so low that it causes domestic producers to leave the industry.
If a horizontal merger lowers the cost of production and increases the total surplus in the market, which of the following is also likely to have occurred?
A) The producer surplus decreased. B) The consumer surplus increased. C) The consumer surplus decreased. D) The producer surplus did not change.
In the United States since World War II, there has been
a. a dramatic increase in the population living in rural areas b. a decline in the number of women in the labor force c. a decrease in the opportunity cost of working in the home d. more specialization of production within households e. a dramatic increase in the number of married women in the labor force
One reason a bank keeps vault cash is because it
a. may be required to provide cash to customers who are withdrawing their funds b. wants to earn more interest income c. wants to offer more loans d. may need to make transactions with other banks e. may need to pay more interest on its savings accounts