Assume the properties of normal indifference curves. Where will a consumer maximize their utility?
What will be an ideal response?
The consumer will maximize their utility where the indifference curve is just tangent to the budget constraint.
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Bayesian updating in a separating equilibrium implies the initially uninformed player will fully know what type he is playing when he has to make his move.
Answer the following statement true (T) or false (F)
Which of the following best defines the vicious circle of poverty?
a. Countries are poor because of lack of education and training for workers. b. Countries are poor because of poor international credit. c. Countries are poor because of high population growth. d. Countries are poor because they cannot afford to save and invest.
The condition of fully flexible wages and prices was assumed by
A. the classical economists. B. the Keynesian economists. C. no economists. D. modern economists.
Between 1820 and 1840 freight rates on western rivers declined drastically. The main reason for this drop in prices was _________
a. the decline in the price level. b. tolls and other barriers to trade decreased. c. the decline in monopoly power. d. the frequent use of the steamboat.