Which of the following is not trueconcerning the indifference map?
A. Each consumer has a map of indifference curves.
B. Consumers always prefer curves farther from the origin.
C. Each indifference curve in the map represents a different level of total utility.
D. Indifference curves intersect at the point where marginal utilities are maximized
Answer: D
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Which of the following statements about the elasticity of demand for a monopolist is TRUE?
A) Since a monopolist produces a good with no close substitutes, the price elasticity of demand for the good is zero. B) A monopolist produces a good with demand that is perfectly inelastic because people can not do without the good. C) Since every good has some substitute, even if imperfect, the demand for a good produced by a monopolist will not have zero price elasticity. D) Since the demand curve of a monopolist is downward sloping, the demand for the good must be inelastic.
A banker motivated by profit maximization may make decisions that destabilize the banking system.
Answer the following statement true (T) or false (F)
"For countries with fixed exchange rates, payments deficits would be self-correcting if only governments would stop doing their darnedest to prevent correction." Comment, and include how counterbalancing monetary policy (sterilization) can prevent self-adjustment from occurring.
What will be an ideal response?
When you purchase the lower-priced store brand bread instead of the more expensive name brand, you are experiencing
A) the substitution effect. B) the income effect. C) a fall in total utility. D) diminishing marginal product.