When two goods are perfect substitutes, the indifference curve is
a. a horizontal straight line.
b. bowed outward.
c. a downward-sloping straight line.
d. a right angle.
c
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The marginal product of a variable input is calculated by dividing total product by the change in the variable input
Indicate whether the statement is true or false
If demand and supply both increase
A) the equilibrium quantity definitely will increase and market clearing price definitely will decrease. B) the equilibrium quantity definitely will increase and market clearing price definitely will increase. C) the equilibrium quantity definitely will increase but the change in market clearing price cannot be determined without more information. D) market clearing price definitely will increase but the change in the equilibrium quantity cannot be determined without further information.
The ease with which an asset can be converted into a medium of exchange is known as
a. volatility b. liquidity c. currency d. Gresham's Law e. speculative exchange
According to the simple quantity theory of money in the AD-AS framework, when the money supply increases, the result is __________ in Real GDP and __________ in the price level
A) no change; no change B) a rise; no change C) no change; a rise D) a rise; a fall E) a fall; a rise