If indifference curves cross, then:
A) the assumption of a diminishing marginal rate of substitution is violated.
B) the assumption of transitivity is violated.
C) the assumption of completeness is violated.
D) consumers minimize their satisfaction.
E) all of the above
B
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Regarding business conditions during the 1930s, which of the following events did not occur?
(a) The number of patents applied for declined. (b) The number of mergers between companies increased in an attempt to increase their consolidated strength. (c) Some interest rates, such as the prime rate, fell to less than 1%. (d) In the early years of the Depression, business investment spending on plants and equipment was not enough to increase or maintain the country's capital stock.
The report of the 1911 National Monetary Commission
(a) advocated a turn to bimetallism. (b) advocated unification of the state and national banking systems. (c) advocated centralized reserve associations which would coordinate commercial banking processes such as check clearing. (d) advocated a unified central bank modeled after the Bank of England.
Which of the following accurately describes the relationship between mortgage default rates and the 2008 recession?
a. The recession of 2008 triggered the initial increase in the mortgage default rate. b. The rise in the mortgage default rate preceded the recession and it was a major cause of the 2008 economic downturn. c. Both the increase in the mortgage default rate and the economic recession were the result of the stock market crash of 2008. d. The rise in the mortgage default rate and the economic recession were separate issues and there was no relationship between the two.
A natural monopoly is a market where
a. a single firm has control over a vital natural resource. b. many smaller firms can produce the entire market output at the same per-unit cost as could one large firm. c. a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms. d. many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.