Refer to the information provided in Figure 6.12 below to answer the question that follows.
Figure 6.12Refer to Figure 6.12. If Arthur moves from indifference curve 2 to indifference curve 1, then Arthur?s
A. total utility decreases.
B. prices of the goods decrease.
C. marginal utility decreases.
D. total income increases.
Answer: A
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According to your authors, the "boom" phase of the so-called "business cycle" is
A) caused by an expansionary increase of the money supply. B) a systematic accumulation of mistakes among businesses and households across the economy. C) undertaken because business planners miscalculate the expected profitability of their new ventures. D) ultimately followed by a recessionary "bust" as people begin to correct for the mistakes they've made during the boom phase of the cycle. E) described correctly by all of the above statements.
If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created, their demand curve would shift:
A. up and they would consume more. B. down and they would consume less. C. down and they would consume more. D. up and they would consume less.
Which of the following could lead to an inward shift of the production possibilities frontier?
a) an increase in the cost of one good b) an increase in the utilization of resources c) a rise in the level of technology d) a law is passed whereby a mandatory retirement age of 60 is imposed, from an original age of 65 e) a decrease in the utilization of resources
Which of the following is a variable cost for a taxi driver?
a. monthly car payment b. car insurance payment c. taxi licensing fee d. fuel costs