"If Ivan says he is indifferent between the consumption of a new pair of jeans or a set of earrings, he means that he does not want either product." Is the previous analysis CORRECT? Explain your answer
What will be an ideal response?
The analysis is incorrect. The term "indifferent" means that Ivan does not care if he gets another pair of jeans or another set of earrings.
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Individuals face scarcity; whole societies do not.
Answer the following statement true (T) or false (F)
If economic losses exist in a monopolistically competitive market,
a. new products will be introduced. b. new firms will enter the market because they see potential for profit in the future. c. firms will exit the market and the existing firms' demand curves will shift to the left. d. the average total cost curve must lie below the demand curve. e. firms will exit the market and existing firms' demand curves will shift to the right.
The Asian economies raise investment finance through
a. foreign direct investment b. loans c. IPOs d. all of the above e. both a and b are correct
Suppose that a chair in Germany sells for 100 euros. The exchange rate changes from $1 = 1 euro to $1 = 4 euros. How does this change affect the equivalent U.S. dollar price of the chair?
a. The price decreases from $100 to $25. b. The price increases from $100 to $400. c. The price decreases from $400 to $100. d. The price increases from $25 to $400