The situation in which a person places greater value on a good as more and more people possess it is called the

The Wong family consumes 3 pounds of fish and 5 pounds of chicken per month. The price of fish is $8 per pound and chicken is $4 per pound

a. What is the amount of income allocated to fish and chicken consumption? b. What is the price ratio (the price of fish relative to the price of chicken)? c. Explain the meaning of the price ratio you computed. d. If the Wongs maximize utility, what must the ratio of the marginal utility of fish to the marginal utility of chicken be equal to? e. If the price of chicken rises, will the Wong family consume more chicken, less chicken, or the same amount of chicken? Explain your answer using the rule of equal marginal utility per dollar.

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

a. They were exporting too many commodities. b. The rates they had established were not in accordance with directives from the IMF. c. The exchange rate parities established were inconsistent with their corresponding macroeconomic policies. d. The general public refused to participate. e. The parities established made their currencies undervalued.