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Joe likes to maximize his utility. He is currently weighing two options for his meal, pizza or pasta. A pizza costs $9 while a dish of pasta costs $12. Is it correct to say that, if Joe opts for pasta, then Joe’s marginal utility from pasta is larger than Joe’s marginal utility from pizza?
If U.S. spent on $100 on consumption, $500 on investment, $200 on importing goods or services from foreign countries and $600 on government spending in 2015. Then how much U.S. should have spent on exporting domestic goods or services to foreign coun..
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also the consumer has $288 to spend, and the price of X, Px=16, and the price of Y, Py=1: How much X and Y should the consumer purchase in order to maximize her utility? How much total u..
Leadbelly Co. sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market.
Would the DWL of a tax be larger if the tax (assuming the same size of tax per unit of product) were levied on groceries or meals at fancy restaurants? ? In order to minimize the DWL of a tax, should the government levy tax on groceries or meals at f..
suppose that the interest rates in the u.s. and germany are equal to 5 that the forward one year value of the euro is
Bill borrowed $10,000 to be repaid in quarterly instalments over the next 7 years. The interest rate he is being charged is 11.76% per year compounded quarterly. What is his quarterly payment?
Fill in the blanks below. In an unconstrained maximization problem: The optimal level of activity occurs at the activity level for which______equals. At the optimal level of activity,______is maximized, and the slope of______ equals the slope of_____..
If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. Real gross domestic product is best defined as
The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5. Provide the inverse demand and inverse supply functions for pumpkins...
Explain the advantages of specialization and trade in international economics. Explain how economic growth and international trade increase consumption possibilities.
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million work..
Where would each of the items be included in M1, M2, or M3? Would any of the items not be included at all in these money supplies. Why? Items: clothes, real estate, bank CDs for $1000, $100 in cash, Credit card balance of $500 and a 1968 Ford Mustang..
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