An indifference curve consists of quantity combinations of two goods that yield:
a. equal marginal utilities.
b. negative marginal utilities.
c. the same price ratios.
d. the same total satisfaction.
d
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The short-run Phillips curve suggests what policy making implications?
A) Using discretionary policies, it may be possible to achieve just the right unemployment and inflation mix. B) Active policy making does not yield any predictable results. C) Maintaining both the inflation and unemployment rates at low levels is possible if policy makers will rely solely on nondiscretionary policy making. D) Passive policy making is more effective than active policy making.
What is product differentiation? What market structure is characterized by product differentiation?
What will be an ideal response?
Having product differentiation means that a firm
a. cannot raise its price without suffering substantial loss of sales b. shifts the demand for the product to the left c. produces a good that is only a close substitute, at best, for the goods produced by other firms in the industry d. produces a good that is a perfect substitute for the goods produced by other firms in the industry e. has no incentive to advertise
A situation in which the market system allocates too few resources to the production of a given activity is known as
A. market efficiency. B. market failure. C. market signaling. D. market allocation.