Two indifference curves can cross one another.
Answer the following statement true (T) or false (F)
False
Two indifference curves cannot cross. Each indifference curve shows the combinations of two goods that yield the same level of utility. An indifference map for each individual shows successive indifference curves rising from lower to higher levels of utility. If two curves cross, this would violate the assumption of an equal level of utility presented by the combinations on one indifference curve.
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Without money, no transaction can occur
a. True b. False Indicate whether the statement is true or false
Which of the following is one of the most important causes for the recent increase in income inequality in China?
a. The introduction of free markets while imposing restrictions on internal migration b. The introduction of regulations that do not allow families to have more than one child c. Globalization d. The increase in pollution as a result of industrialization e. Tougher government controls on the banking system
If the income tax system were indexed, a person whose nominal income went up from $30,000 to $33,000 in a year when the price index rose by 10 percent would pay
a. no increases in nominal income taxes. b. no increases in real income taxes. c. lower taxes in both real and nominal terms. d. higher taxes in both real and nominal terms.
At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?