Efficiency is related to the size of the economic pie, whereas equality is related to how the pie gets sliced and distributed
a. True
b. False
Indicate whether the statement is true or false
True
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What does the negative slope of the utilities possibilities frontier imply?
A) Diminishing marginal utility. B) The only way to increase one person's utility is to decrease another person's utility. C) Diminishing marginal rates of substitution. D) The only way to increase output of one good is to decrease output of another.
Pete consumes two goods, rice and fish. When the price of fish rises, he consumes less fish. When the price of rice rises, he consumes more rice. For Pete,
a. fish is not a Giffen good but rice is. b. rice is not a Giffen good but fish is. c. both fish and rice are normal goods. d. both fish and rice are Giffen goods.
A currency union would be beneficial to nations with symmetrical demand shocks so that a coordinated monetary policy is possible. Comparing the Eurozone with the United States, the finding is:
A) the Eurozone nations and the U.S. states are markedly different in the correlation between growth rates of GDP. B) the Eurozone nations and the U.S. states are quite similar in terms of correlation between growth rates of GDP. C) the Eurozone nations have higher growth rates of GDP in their member states, whereas the United States exhibits lower growth rates. D) the Eurozone is much more diverse in terms of its growth in GDP.
According to the following graph, what is Y1?
The consumer's income is $1,200.
A. 110 B. 30 C. 80 D. 120 E. none of the above