Suppose that Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50 . The marginal utility of the last slice of pizza Fernando ate today was 30, and the marginal utility of his last Coke was 25 . Fernando spent all of his lunch money. From this information, we can conclude that:
a. Fernando allocated his money in a way that maximized his total utility.
b. Fernando's total utility would have been higher if he had purchased more Coke and less pizza.
c. Fernando's total utility would have been higher if he had purchased more pizza and less Coke.
d. Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza.
e. Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke.
b
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Mr. Frank, a foreman supervisor some 43 employees, was asked by his secretary to sign a form requesting additional supplies needed on the factory floor. He was not careless when he examined the form, but his secretary had cleverly arranged the signature line so that instead of signing a request form for supplies he signed a cheque payable to his secretary. What plea, if any, would be used to defend against her action on the cheque?
a. Mistake b. Illegality of object c. Rescission d. Non est factum e. Rectification
When the central bank ________ the money supply, the LM curve shifts to the right, interest rates ________, and equilibrium aggregate output ________, everything else held constant
A) increases; fall; increases B) increases; rise; decreases C) decreases; rise; decreases D) decreases; fall; increases