Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Which statement below is true?
A) Ben can produce spiritual goods more efficiently than Cal.
B) Cal can produce material goods more efficiently than Ben.
C) Ben can produce material goods more efficiently than Cal.
D) Ben can produce both material and spiritual goods more efficiently than Cal.
Answer: C) Ben can produce material goods more efficiently than Cal.
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Refer to the scenario above. If both individuals are offered movie tickets worth 40 utils today instead of the gift voucher, then which of the following statements is true?
A) Both Susan and Jim will prefer to retain the gift voucher. B) Both Susan and Jim will prefer the movie tickets over the gift voucher. C) Susan will prefer the gift voucher, while Jim will prefer the movie ticket. D) Jim will prefer the gift voucher, while Susan will prefer the movie ticket.
If the required reserve ratio were 15 percent, the value of the monetary multiplier would be:
A. 5.50 B. 6.67 C. 7.32 D. 8.54