All points on an indifference curve represent combinations of two goods that are equally desirable to the consumer.
Answer the following statement true (T) or false (F)
True
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A movement along the consumption function is the result of a change in
A) consumer wealth. B) income. C) autonomous consumption. D) expected wealth.
Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, Wrangler, and many others are all producers of jeans. J Brand jeans sell for about $200 a pair. What would happen if J Brand priced their jeans at $220 per pair?
A) They would sell fewer jeans because demand is elastic. B) They would not sell any jeans. C) They would sell more jeans. D) They would sell fewer jeans because demand is perfectly elastic.
The equilibrium price and quantity in Figure 3.2 are, respectively,
Figure 3.2 Supply and Demand
A. $12 and 20 units. B. $12 and 40 units. C. $6 and 20 units. D. $9 and 30 units.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.