Figure 5-10
In the indifference curve pictured in Figure 5-10, which of the following is clearly true?
A. B is preferred to D.
B. B is preferred to C.
C. A is preferred to B.
D. C is preferred to D.
Answer: B
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The economy is at full employment and then aggregate demand increases. Describe what happens as an immediate result of the increase in aggregate demand. Describe how the economy adjusts back to full employment
What will be an ideal response?
A bank that wants to monitor the check payment practices of its commercial borrowers, so that moral hazard can be reduced, will require borrowers to
A) place a bank officer on their board of directors. B) place a corporate officer on the bank's board of directors. C) keep compensating balances in a checking account at the bank. D) purchase the bank's CDs.
Which of the following is a plausible explanation for a downward shift in the consumption function?
A) A decline in home values B) A decline in wages C) A decrease in the personal income tax rate D) A rise in wages
One typical way that economists define efficiency is when it is possible to improve the situation of one party without imposing a cost on another.
Select whether the statement is true or false. A. True B. False