Left shoes and right shoes are perfect complements. An indifference curve for left and right shoes is a line with
A) constant slope.
B) a 30-degree angle.
C) a 45-degree angle.
D) a 90-degree angle.
D
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When a tax is placed on sellers:
A. sellers always bear a higher incidence than buyers. B. buyers always bear a higher incidence than sellers. C. the effect on the price buyers pay and sellers receive is the same as a tax on buyers. D. None of these is true.
Which of the following is a difference between a cartel and a monopoly?
a. A cartel will seek to decrease production in order to increase profits, whereas a monopoly will seek to increase production in order to increase profits. b. A cartel is a price taker, whereas a monopoly is a price setter. c. The members of a cartel each have an incentive to cheat on the agreed-upon quantity and price, whereas a monopoly has no such incentive. d. The members of a cartel sell homogeneous products, while a monopoly sells differentiated products.
According to the real balances effect, when the price level:
A. Falls, cash is worth less and therefore people buy less. B. Falls, cash is worth more and therefore people buy more. C. Rises, cash is worth less and therefore people buy more. D. Rises, cash is worth more and therefore people buy less.
When long-run average costs rise as output increases, the firm is experiencing
A) diseconomies of scale. B) diminishing returns. C) constant returns to scale. D) economies of scale.