Basket of goods A is on an indifference curve that lies further from the origin than basket B. From this we know that
A. the satisfaction from consuming A is more than the satisfaction from consuming B.
B. all other consumers would also rank B above A.
C. the marginal utility from consuming A is more than the marginal utility from
consuming B.
D. the prices of the goods in A are more than the prices of the goods in B.
Answer: A
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According to the graph shown, if this economy were to open to trade, domestic producers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. transfer surplus in area DE to consumers.
B. transfer surplus in area DE to foreign producers.
C. lose surplus in area FG to deadweight loss.
D. lose surplus in area FG to foreign producers.
Consider the segment of a demand curve along which all price elasticities of demand are less than 1 . A decrease in price anywhere along that segment
a. shifts that segment of the demand curve to the right b. increases total revenue c. decreases total revenue d. shifts that segment of the demand curve to the left e. raises the price elasticity of demand
Economists use the word utility to describe the satisfaction one receives from a good
Indicate whether the statement is true or false
The 2001 and 2003 tax cuts of the George W. Bush administration each had provisions to
A. lower the earned income tax credit. B. lower (or speed up the already scheduled lowering) to tax rates. C. raise tax rates at the lower end. D. raise tax rates at the upper end.