Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?
A. A budget constraint.
B. An indifference map.
C. An indifference curve.
D. A demand curve.
Answer: A
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Refer to the table above. What is the market demand for wine when the price is $3?
A) 50 units B) 35 units C) 66 units D) 28 units
A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it
Indicate whether the statement is true or false
Assume that increasing the utility of the transfer recipient is the only criterion cared about. When comparing a cash transfer payment to an in-kind payment of an equal value it is clear that _____
a. the recipient is always better off with a cash transfer b. the recipient is never worse off with a cash transfer c. the two are identical d. the recipient would prefer an in-kind payment if legally possible
The graphical device that illustrates the concept of scarce resources being efficiently utilized in the economy is a(n)
a. budget line. b. indifference curve. c. production possibilities frontier. d. marginal cost curve.