The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Considering only the labeled points, point c is a possible equilibrium
A) only if it is the endowment.
B) only if point a is the endowment.
C) if either point a or b is the endowment.
D) only if point d is the endowment.
C
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If the demand for a good is highly elastic, that good is likely to have:
A. many close substitutes. B. many close complements. C. few close substitutes. D. few close complements.
Demand curves with constant slopes must have different own-price elasticities as one moves along the demand curve.
Answer the following statement true (T) or false (F)
Production indifference curves bow inward toward the graph's origin because of
a. the law of diminishing returns to a single input. b. the law of diminishing marginal returns to scale. c. constant returns to scale. d. minimizing costs in the short run.
In 2000 . many economists believed that the most serious macroeconomic problem confronting the U.S. economy was an inflationary gap. Which policies would be effective in dealing with this problem?
a. Increase transfer payments. b. Increase government purchases. c. Decrease personal income taxes. d. Increase personal income taxes.