For a risk-averse individual, as wealth increases, total utility
A) increases at a decreasing rate.
B) increases at a constant rate.
C) increases at an increasing rate.
D) is constant.
A
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When the Fed raises the federal funds rate, eventually there is
A) an upward movement along the investment demand curve and the aggregate demand curve shifts leftward. B) an upward movement along the investment demand curve and the aggregate demand curve shifts rightward. C) a leftward shift of the investment demand curve and the aggregate demand curve shifts leftward. D) an upward movement along the investment demand curve and along the aggregate demand curve. E) a leftward shift of both the aggregate demand curve and the aggregate supply curve.
Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government
One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread, therefore, sells for A) $0.50 per loaf. B) $1.00 per loaf. C) $2.00 per loaf. D) cannot tell, insufficient information