Which of the following is a key characteristic of the indifference curve?
A. Indifference curves can cross to show transitivity of products.
B. As more of one good is consumed more of the other good must also be consumed.
C. Indifference curves are concave to the origin.
D. Indifference curves further from the origin are preferred to those closer to the origin.
Answer: D
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A reason why many of the third world countries are not achieving an increase in their standard of living is that they
A) don't have a strong central government. B) don't have strong military power to force people to work harder. C) don't have social institutions with a strong rule of law and economic freedom. D) strongly encouraged international trade. E) don't have enough natural resources.
With flexible exchange rates, the imbalance between debits and credits arising from shifts in currency demand and/or supply is accommodated by ______.
a. special financial borrowings b. fixed exchange rates c. changes in currency prices d. reserve movements
Seller A has an upward-sloping supply curve and is willing to supply 400 units of a commodity at a price of $5 per unit. Seller A is now willing to supply 500 units at a price of $5 per unit. Evidently, seller A has experienced a(n):
A. increase in supply. B. decrease in supply. C. increase in quantity supplied. D. decrease in the quantity supplied.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.