An indifference curve shows the baskets of goods which
a. have the same marginal values.
b. the consumer can purchase, given his income and the prices he faces.
c. are the most preferred of the baskets within his budget.
d. are all equally desirable, providing the consumer with some fixed level of satisfaction.
d. are all equally desirable, providing the consumer with some fixed level of satisfaction.
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Menu costs ________
A) are the cost a firm bears when it changes its prices B) are one source of price stickiness because changing prices involves many hidden costs C) are one source of price stickiness because firms may not want to change their "menus" too often and risk alienating customers D) all of the above E) none of the above
Consider a firm that needs one day to hire more labor, one week to increase its purchases of raw materials, and three months to change the amount of its capital. This firm's long run is
a. three months b. one week c. one day d. three months plus eight days e. three months plus one week
Which of the following statements about the circular-flow diagram is correct?
a. One must imagine that the economy operates without money in order to make sense of the diagram. b. The diagram leaves out details that are not essential for understanding the economic transactions that occur between households and firms. c. The government cannot be excluded as a decision maker in a circular-flow diagram. d. All of the above are correct.
How frequently is U.S. GDP reported? Is GDP adjusted for seasonality?