An indifference map implies that:
A. money income is constant, but the prices of the two products vary directly with the
quantities purchased.
B. the two products under consideration are perfectly substitutable for one another.
C. a consumer is better off to be at some point high on a given curve as opposed to a point
low on the same curve.
D. curves farther from the origin yield higher levels of total utility.
Answer: A
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Which of the following is not the result of wage stickiness in an economic downturn?
A. Actual wages are temporarily above the market-clearing level. B. Cyclical unemployment. C. A surplus of labor. D. A shortage of labor.
The consumer optimum is defined as
A. the set of goods and services that maximizes marginal utility for each good. B. the set of goods and services, subject to the limited income of the consumer, that maximizes the total utility of the consumer. C. the set of goods and services such that the marginal utility of each good equals zero. D. the set of goods and services that maximizes the marginal utility of each good consumed.
Which of the following lists of exchange-rate systems is arranged in proper historical order, from earliest to most current?
A. Bretton Woods system, gold standard, managed float. B. Gold standard, managed float, Bretton Woods system. C. Managed float, Bretton Woods system, gold standard. D. Gold standard, Bretton Woods system, managed float.
Bill's Lawn service starts the year with 20 lawn mowers. During the year, 3 mowers break and are not worth fixing. Bill also expands his business and buys 10 more mowers. Bill's gross investment is ________ mowers
A) 13 B) 10 C) 30 D) 27 E) 7