At a ball game we can observe people eating hot dogs, french fries, and hamburgers. If all are priced the same and we observe Michelle eating a hot dog and David eating a hamburger, we can conclude that
A. at this time Michelle derives more utility from eating a hot dog than from eating either a hamburger or french fries, while David derives more utility from eating a hamburger than from eating either a hot dog or french fries.
B. Michelle derives the same amount of utility from eating a hot dog as David derives from eating a hamburger.
C. Robert will be eating french fries.
D. Michelle likes hot dogs better than David does and David likes hamburgers better than Michelle does.
Answer: A
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According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause
A. prices to rise and output to remain unchanged. B. prices to fall and output to fall. C. prices to rise and output to rise. D. prices to fall and output to remain unchanged.
Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. What is the marginal cost of the 19th sweater?
A) $40.00 B) $20.00 C) $10.00 D) $8.00