Exhibit 6A-3 Consumer equilibrium
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Given the budget line and indifference curves shown in Exhibit 6A-3, assume the consumer is initially at point W. To maximize total utility, the consumer should:
A. purchase more of good Y and less of good X.
B. remain at point W.
C. move to point X and then point Y.
D. purchase more of good X and less of good Y.
Answer: D
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A decrease in the value of a currency is called a(n)
A) depreciation. B) integration. C) appreciation. D) consolation.
According to fundamental analysis, a saver should prefer to buy stocks that are
a. undervalued. This means the price of the stock is low given the value of the corporation. b. undervalued. This means the value of the corporation is low given the price of stock. c. overvalued. This means the price of the stock is high given the value of the corporation. d. overvalued. This means the value of the corporation is high given the price of stock.
A worldwide slowdown in productivity growth occurred:
A. in the 1970s and 1980s. B. in the 1950s and 1960s. C. before 1950. D. in the 1960s and 1970s.
In the graph shown above at a price of $4.50
A. there is a shortage.
B. there is a surplus.
C. there is a both a shortage and a surplus.
D. there is neither a shortage nor a surplus.