The budget line does not depend on
A) The prices of the goods in question. B) The preferences for the respective goods.
C) Income. D) None of the above.
Answer: B
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Which of the following statements is true of money?
A) Paper money was invented around 1,000 A.D. in China. B) Paper money was the first form of money to be invented. C) One of the limitations of paper money is that it does not function as a store of value. D) Fiat money was used in the barter system of exchange.
In the long run, monopolistically competitive firms make zero economic profits because of government regulations
Indicate whether the statement is true or false
An isoquant represents levels of capital and labor that
A) have constant marginal productivity. B) yield the same level of output. C) incur the same total cost. D) All of the above.
If a principal and agent have an efficient contract, then
A) one of them must be more risk-averse than the other. B) neither can be made better off without harming the other. C) they must have symmetric information. D) the principal bears more of the risk.