The risk-return indifference curves for a risk-neutral investor are:
A) vertical lines.
B) straight lines with slope equal to one.
C) horizontal lines.
D) upward sloping lines that are bowed downward.
C
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If the marginal utility of apples exceeds the marginal cost of producing apples, then in a free market production of apples will ____, with the likely result that marginal utility will ____.
A. rise; fall B. fall; rise C. rise; rise D. fall; fall
Which of the following is an example of a final good or service?
a. Bricks purchased by a company for constructing houses b. Wheat purchased by a bakery c. Steel purchased by a company for manufacturing cars d. A cup of coffee bought at a restaurant e. A used car bought by a person
The major sources of funds for the U.S. Federal government include the following, except:
A. Payroll taxes B. Proprietary income C. Borrowing D. General sales taxes
Suppose that in a given country in a given year, GNP equals $2,000, investment expenditures equal $200, government expenditures equal $150, and the current account surplus equals $50. Consumption expenditures therefore equal
A) $1,000. B) $1,200. C) $1,400. D) $1,600.