The magnitude of the slope of an indifference curve is:
A) called the marginal rate of substitution.
B) equal to the ratio of the total utility of the goods.
C) always equal to the ratio of the prices of the goods.
D) all of the above
E) A and C only
A
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If the number of sellers decreases, then the supply curve ________ and the supply ________
A) shifts rightward; increases B) shifts leftward; decreases C) does not shift; does not change, but there is a decrease in the quantity supplied D) shifts leftward; increases E) shifts rightward; decreases
The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. If real GDP is equal to $900 billion, then
A) aggregate planned expenditure is greater than real GDP. B) aggregate planned expenditure will need to decrease to reach the equilibrium. C) aggregate planned expenditure is less than real GDP. D) this is the equilibrium level of real GDP. E) aggregate planned expenditure is equal to real GDP.
If the percentage change in the price of a good is less than the resulting percentage change in the quantity demanded of that good, then the demand for that good is:
A. unit elastic. B. inelastic. C. elastic. D. perfectly inelastic.
What is a natural monopoly? Why is government justified in regulating a natural monopoly?
What will be an ideal response?