Refer to Goods X and Y. If the marginal rate of good X in terms of good Y is large, then the indifference curve will be
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.
a. convex.
b. concave.
c. steep.
d. flat.
c. steep.
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Externalities can occur as a result of either production or consumption activities
a. True b. False
Frank owns Frank's Shoes. During a particular period, the price of shoes rises and Frank produces more shoes by hiring more workers and using more material, such as leather. However, he still works with the same size factory because he has a long-term lease. You know that
a. by producing more, Frank's supply curve of shoes shifts to the right b. the factory is overworked so that Frank cannot maintain the production levelhe selected c. by producing more, Frank's demand curve for shoes shifts to the left d. Frank is producing in the short run e. Frank is producing in the long run
Low expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; low B. small; high C. large; low D. large; high
The price at which the quantity supplied equals the quantity demanded is the
A. equilibrium quantity. B. market price. C. satiation point. D. equilibrium price.