M2
What will be an ideal response?
is a broader measure of money
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The graph shows a
A) positive relationship that becomes steeper. B) negative relationship that becomes steeper. C) positive relationship that becomes less stee
Assume that Anne has $300 to spend on DVDs and CDs. Her optimal consumption of DVDs and CDs is illustrated by a tangency between a budget line and an indifference curve. Now assume that the price of CDs rises but the price of DVDs falls
How can you show that Anne is made better off by these price changes? A) Show that the price changes move Anne along her budget line to a higher indifference curve. B) Show that Anne can now afford to buy more DVDs, which give her greater utility than CDs. C) Show that the price changes shift Anne's budget line outward; the budget line is tangent to a higher indifference curve. D) Show that Anne can afford to buy the optimal combination of DVDs and CDs at their original prices; then show that Anne can now reach a higher indifference curve.
Microeconomics is most likely to be concerned with the:
A) economy as a whole. B) activity of large segments of the economy. C) economic behavior of specific parts or units of the economy. D) economy-wide trends in unemployment, prices, and production.
Unregulated natural monopolists produce suboptimal rates of output.
Answer the following statement true (T) or false (F)