An indifference curve shows
a) different combinations of income and prices at which an individual can afford equal quantities of two goods
b) different combination of goods that all cost the same
c) different quantities of current and future consumption that are consistent with the intertemporal budget constraint
d) different combinations of goods that yield the same level of satisfaction
e) different levels of satisfaction that can be obtained from a given budget constraint
d) different combinations of goods that yield the same level of satisfaction
You might also like to view...
Draw a saving—investment diagram to show how each of the following changes shifts the IS curve
(a) Future income rises. (b) The future marginal productivity of capital increases. (c) Government purchases decrease temporarily. (d) The effective corporate tax rate increases.
To avoid the stock versus flow issue in production, some economists discuss capital usage in terms of rented capital
For example, your firm may not directly own some of the capital inputs to your production operation, and these capital inputs are employed on an hourly or daily basis. Which of the following inputs is a good example of a capital input that acts like a flow? A) Land and buildings that are owned by the firm B) A long-term licensing agreements that allow you to use a patented idea owned by another firm C) A forklift that is rented on an hourly basis D) all of the above
Suppose the cost of medical care rose 200 percent from 1990 to 2010, and average prices for the economy rose 150 percent. Relative to others, people who purchased medical care experienced a:
A. Lower real income as a result of the price effect. B. Higher real income as a result of the price effect. C. Lower real income as a result of the wealth effect. D. Higher real income as a result of the wealth effect.
The curve most economists use to follow the relationship between the interest rates and bonds' time to maturity is the:
A. demand of money curve. B. yield curve. C. effective supply of money curve. D. aggregate demand curve.