A budget constraint line represents combinations of two goods that provide an individual the same total utility.
Answer the following statement true (T) or false (F)
False
An indifference curve is a graphical representation of the combinations of two goods that yield equal total utility. A budget constraint depicts the limited consumption possibilities.
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The fraction of an increase in income that is saved is referred to as the _____
a. marginal propensity to save b. average propensity to save c. marginal propensity to consume d. average propensity to consume e. saving-consumption ratio
If you lost 10 percent on $200 worth of stock in a 3x margin account, then you would lose:
A. $60. B. $20. C. $30. D. $40.
In principle, trade can make a nation better off, because the gains to the winners exceed the losses to the losers
a. True b. False Indicate whether the statement is true or false
Pure economic rent is a payment to a resource that
A. has a perfectly inelastic supply. B. has a negative opportunity cost. C. has a perfectly elastic demand. D. has a high opportunity cost.