We use indifference curves because
A) households on average do not care.
B) they help represent preferences.
C) households sometimes make mistakes.
D) they formalize the production process.
B
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When a competitive equilibrium is achieved in a market
A) the total net benefit to society is maximized. B) the total benefits to consumers are equal to the total benefits to producers. C) economic surplus equals the deadweight loss. D) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
Economic growth will NOT result in deflation if aggregate demand shifts
A) outward to the right at the same speed as aggregate supply. B) inward to the left at the same speed as aggregate supply. C) outward to the right as aggregate supply shifts inward to the left. D) inward to the left as aggregate supply shifts outward to the right.
In which of the following ways is a monopolist different from a perfect competitor?
a. Average cost will continually drop as output expands. b. Price is above marginal revenue. c. Average total cost equals average fixed costs plus average variable costs. d. The demand curve for the industry has a negative slope.
Inflation
What will be an ideal response?