What is significant about a point on a graph at which an indifference curve is tangent to a budget constraint?
A point of tangency between an indifference curve and a budget constraint represents a consumer's optimum.
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In the production possibilities frontier depicted in the figure above, what is the opportunity cost of increasing the production of bananas from two million pounds to three million pounds?
A) 1/2 hat per pound of bananas B) 1 hat per pound of bananas C) 2 hats per pound of bananas D) 3 hats per pound of bananas
Ceteris paribus, an increase in the money supply will lower short-term interest rates
Indicate whether the statement is true or false
Historically barriers to development in the U.S., such as the dry deserts of some of the country's western states, have been solved by
(a) only government action. (b) only private action. (c) a blend of government and private actions. (d) foreign expertise.
The money supply can be increased by decreasing the required reserve ratio
a. True b. False Indicate whether the statement is true or false