The assumptions about tastes and behavior to model the trading between two people do NOT include
A) utility maximization.
B) convex indifference curves.
C) nonsatiation.
D) interdependence.
D
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Compare the effectiveness of monetary policy in an open economy with mobile international capital with monetary policy in a closed economy. Why is it different? Use an appropriate diagram to illustrate your answer.
What will be an ideal response?
Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. both wants and resources are unlimited, so trade-offs are unnecessary. B. wants are limited and resources are unlimited, so trade-offs are unnecessary. C. wants are unlimited and resources are scarce, so trade-offs have to be made. D. wants are limited and resources are unlimited, so trade-offs have to be made.
Once a public good is produced, everyone
A. consumes the same amount, but the willingness to pay will be different for different individuals. B. can consume a different amount and pay different prices for the product. C. consumes the same amount and everyone's willingness to pay is the same. D. can consume a different amount depending on their willingness to buy the good.
Which type of policy raises the most revenue for the government?
A) tariff B) quota C) voluntary export restraints D) If they are set at the same level, all of the above raise the same amount of revenue. E) None of the above answers is correct because none of the policies raises revenue for the government.