Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,
A. an indifference curve linking the two goods will have a constant slope.
B. the demand curves for these goods will be positively sloped.
C. an indifference curve will be convex to the origin.
D. the demand curves for these goods will be horizontal.
Answer: C
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Suppose a technology is described by the production function 
a. For a price taking producer who faces output price p and wage w, derive the first order condition and interpret it.
b. Without knowing more about the function f, is the condition you derived in (a) either necessary or sufficient for deriving the profit maximizing production plan? Explain.
c. Suppose 
. Derive the first order condition you illustrated in (a) and solve for 
.
d. For what values of 
is this first order condition necessary and sufficient for deriving a profit maximizing production plan? Explain.
What will be an ideal response?
Economists studying the impact of currency unions on trade found currency unions:
A) increased levels of trade by 221%. B) increased levels of trade by 104%. C) increased levels of trade by 38%. D) had no effect on trade levels.
If a bank's deposits at the Fed increase by $10 million, then
A. both the bank's liabilities and the Fed's liabilities increase by $10 million. B. both the bank's assets and the Fed's assets increase by $10 million. C. the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million. D. the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities.
The Celler-Kefauver Act of 1950
A. declared every contract or conspiracy to restrain trade illegal. B. extended the language of the Federal Trade Commission Act to include "deceptive" as well as "unfair" competition methods. C. outlawed specific monopolistic behaviors such as tying contracts, price discrimination, and unlimited mergers. D. extended the government's authority to ban vertical and conglomerate mergers.