If the slope of an indifference curve between two goods decreases as we move from left to right (dropping all minus signs), we infer that the consumer
a. is less willing to trade away a good when he has a lot of it.
b. is more willing to trade away a good when he has a lot of it.
c. always tries to keep the percentage of his budget spent on each good constant.
d. views one of the goods as inferior.
b
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Which of the following would increase the value of the dollar in the long run?
A) a decrease in U.S. tariffs on foreign goods B) an increase in the demand for American goods relative to goods from other countries C) an increase in inflation in the United States relative to other countries D) an increase in the supply of dollars on the foreign exchange market
Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points
A) 0.1 to 0.2 B) 0.2 to 2.0 C) 0.4 D) 0.5 to 1.0 E) 1.0 to 3.0
Assume the exchange rate of the domestic currency is overvalued. What does the central bank need to do in order to keep the exchange rate fixed?
a. There is no need to intervene since the domestic currency is not undervalued. b. It needs to increase the money supply by raising the discount rate. c. It needs to sell the excess demand for foreign currency. d. It needs to buy the excess supply of foreign currency. e. It needs to decrease the money supply by lowering the discount rate.
Platform businesses are firms that:
A. produce platforms for producing goods. B. facilitate interaction among people. C. initiate international trade. D. focus on freedom of speech.