If preferences are transitive, indifference curves
A) intersect at the optimum consumption bundle.
B) do not intersect.
C) intersect where the marginal rate of substitution for each indifference curve is equal.
D) intersect at the equilibrium consumption bundle.
B
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In 2009, the interest rate fell below 1 percent in the United States. As a result, there was a
A) leftward shift in the supply of money curve. B) movement upward along the money supply curve. C) movement downward along the demand for money curve. D) movement upward along the demand for money curve. E) rightward shift in the demand for money curve.
Central banks sometimes attempt quantitative easing when
A) money growth is too high. B) inflation is too high. C) there is a liquidity trap. D) inflation is too low.
Which of the following best describes the market reaction if a city restricts the number of firms that are allowed to operate in a market?
A) The market supply curve shifts to the left. B) The market demand curve shifts to the left. C) Quantity supplied increases because price increases. D) Price decreases.
Which of the following best defines discrimination?
a. Acting on a belief that people of a certain race or gender are inferior b. Believing that people of a certain race, gender, or religion are inferior c. Making disparaging comments about a specific race, gender, or religion d. Avoiding any association with people who belong to a certain religion or race