Indifference curves that cross would suggest that
a. the consumer does not prefer more to less.
b. the consumer is likely to prefer a redistribution of income from rich to poor.
c. different individuals have different preferences for the same goods.
d. the marginal rate of substitution is the same for both indifference curves.
a
You might also like to view...
The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, compute the value of GDP.
A. 2,700 B. 2,400 C. 2,500 D. 2,600
Moving along the potential GDP line, the money wage rate changes by the same percentage as the change in the price level so that the real wage rate
A) stays at the full-employment equilibrium level. B) increases. C) might either increase or decrease. D) decreases. E) stays the same, though not necessarily at the full-employment equilibrium level.
All of the following will tend to increase the number of years until the oil stock is depleted except
A) falling oil prices. B) additional oil exploration. C) conservation measures. D) development of oil substitutes.
Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost b. fallen; decreasing cost c. increased; increasing cost d. increased; decreasing costs e. decreased; constant cost