Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. If the price per unit of good X is $1, the consumer would maximize utility by consuming
A. 25 units of Y.
B. 21 units of Y.
C. 10 units of Y.
D. 15 units of Y.
Answer: D
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An increase in the price of a particular bond implies an increase in the interest rate for that bond
a. True b. False Indicate whether the statement is true or false
Consumers in the importing country will tend to favor import quotas over free international trade
Indicate whether the statement is true or false
All industrialized countries have become “service economies” in recent decades. Explain the reasons behind this shift.
What will be an ideal response?
In Figure 9.2, if the consumption function shifts from C2 to C1, autonomous consumption
A. Decreases, and aggregate demand shifts to the left. B. Decreases, and aggregate demand shifts to the right. C. Increases, and aggregate demand shifts to the left. D. Increases, and aggregate demand shifts to the right.