If an individual consumes only two goods and consumption of one good increases, then in order to keep the consumer on the same indifference curve, consumption of the other good must
A) increase.
B) decrease.
C) increase proportionately.
D) become negative.
Answer: B
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Suppose that domestic investment in Japan is 20.2% of GDP, and Japanese national savings is 24% of GDP. What is Japan's foreign investment as a percentage of GDP?
A) 1.19% B) 3.8% C) 27.8% D) 44.2%
Which of the following is not included in M2?
A) Money market mutual funds held by individuals B) Money market deposit accounts C) Money market mutual funds held by institutions D) Small-denomination time deposits
If a potato farmer expands output, he finds that the increase in total revenue is less than the increase in total costs. This means that:
a. profit is being maximized. b. he should not have expanded output. c. he should produce even more output. d. the firm is wasting resources. e. the farmer should go out of business.
In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes
A. profit. B. the wage. C. strike duration. D. output. E. labor costs.