Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MUa = 15 and MUb = 80, and the Pa = $5 and the Pb = $20 . Then the consumer:
a. is maximizing his/her utility.
b. should increase his/her purchases of B and decrease the purchases of A.
c. should spend more money on both goods.
d. should spend less money on both goods.
e. should increase the purchases of A and decrease the purchases of B.
b
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Which of the following did not contribute to the U.S. banking collapse of 1929-1933?
a. The Federal Reserve System and other government agencies did not act quickly or decisively enough b. Deposit insurance did not exist at that time. c. The banking industry consisted of only a few very large banks. d. The fact that the economy was in a continuous downward spiral during this period undermined depositors' confidence in the solvency of the banks.
An exclusive legal right as sole producer for 20 years granted to an inventor of a product is called a:
A. Copyright B. Franchise C. Patent D. License