Indifference curves are downward sloping because
A) when some of one good is taken away the consumer must be compensated with more of the other.
B) higher prices mean less quantity demanded.
C) higher indifference curves mean higher utility.
D) Both A and B.
A
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"It is in the interest of each depositor to withdraw her money from a bank if all other depositors are doing the same, even when the bank's assets are sound." Discuss. As part of your answer clearly state whether the statement is true or false
What will be an ideal response?
Supporters of a floating exchange rate cited all of the following as advantages over the Bretton Woods system EXCEPT
A) each country would be able to choose its own long run inflation rate. B) parity changes and speculative attacks would no longer be possible. C) countries would be forced to work cooperatively in deciding monetary policy. D) exchange rates would be set symmetrically in foreign markets rather than by government decision. E) governments would not need to export inflation to decrease domestic unemployment.
If the current margin is greater than the desired margin, the firm should
a. Increase price b. Decrease price c. Not change the price d. Marginal revenue and marginal cost are both zero
By free enterprise, we mean that:
A. individuals are free to produce those products that government agencies determine can be produced profitably. B. individual producers determine how to produce, but government agencies determine what will be produced. C. individuals may obtain resources, organize production, and sell the resulting output in any legal way they choose. D. products are provided free to those who cannot afford to buy them.