Suppose the price of one euro is fixed at $1.00. A Dutch oil company discovers new oil reserves in the North Sea and offers the oil for sale. What event would prevent a shortage of euros from developing?
a. The dollar price of one euro remains fixed at $1.00.
b. The quantity of euros demanded changes from Q1 to Q2.
c. The dollar price of one euro is allowed to change to $1.50.
d. An increase in demand for euros shifts D1 to D2.
c. The dollar price of one euro is allowed to change to $1.50.
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There is no opportunity cost of obtaining
A) a free good. B) a scarce good. C) any good a person acquires, as long as they value it highly enough. D) any good a person acquires, as long a they think it is worth the effort.
The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per slice and Homer has $12 to spend on cookies and cake
Homer will consume ________ of cookies and ________ of cake. A) 1 pound; 5 slices B) 2 pounds; 4 slices C) 3 pounds; 3 slices D) 5 pounds; 2 slices