Clifford lives by the motto "Eat, drink and be merry today, for tomorrow doesn't matter." If today's consumption is measured on the horizontal axis and tomorrow's consumption is measured on the vertical axis, Clifford's indifference curves
A) are horizontal straight lines.
B) are vertical straight lines.
C) show decreasing utility as one moves upward.
D) cannot be determined from the information given.
B
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Amalgamated Widget Company is currently considering which investment projects it should undertake. The following list of projects along with the estimated rate of return of each project is presented to the executive management team:Project A (9%)Project B (7.5%)Project C (6.5%)Project D (11%)Project E (5.5%)The current interest rate in the loanable funds market is 6%. However, if an increase in government borrowing pushes the interest rate to 8%, we would expect the company to undertake ________ projects.
A. four B. five C. two D. three
Normative economics looks at outcomes of economic behavior and evaluates them as good or bad.
Answer the following statement true (T) or false (F)
Proposals in Flint Hills, Kansas, to build wind turbines to generate electricity have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce use of fossil fuel, but local chapters of the Nature Conservancy say they will befoul the landscape. The Nature Conservancy is arguing that that wind turbines:
A. are a source of positive externalities. B. are a source of negative externalities. C. are a way of solving a free rider problem. D. create a free rider problem.
Answer the following statements true (T) or false (F)
1. An example of the special interest effect is a farm program from which a large group receives small benefits at the expense of a smaller group who individually suffer large losses. 2. The Freedom to Farm Act of 1996 aimed to eliminate agricultural price supports and acreage allotments for many crops. 3. The movement to eliminate agricultural subsidies in the U.S. and make farmers rely more on market forces, starting with the Farm Act of 1996, continues to this day. 4. The Food, Conservation, and Energy Act of 2008 provides farm subsidies in the form of direct payments, countercyclical payments and marketing loans to farmers.