A budget constraint shows
A. all of the possible combinations of goods that can be purchased with a specific budget.
B. all of the combinations of sets of goods that yield the same level of satisfaction.
C. all of the goods the consumer gets positive marginal utility from when the goods are consumed.
D. all of the goods that a consumer substitutes for other goods when prices fall.
Answer: A
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A common characteristic in oligopolistic markets is
A. consideration of rivals’ reactions. B. standardized products. C. high profits. D. unused capacity.
The marginal revenue product of labor is usually downward sloping
Indicate whether the statement is true or false
When a U.S. importer needs $22,000 to settle an invoice for 25,520 Swiss francs, the exchange rate must be:
a. 1 Swiss franc = $1.16. b. 1 Swiss franc = $0.16. c. 1 Swiss franc = $0.84. d. $1 = 1.16 Swiss franc. e. $1 = 1.84 Swiss franc.
Low levels of sales that cause low levels of investment spending is an example of a
a. vicious circle. b. virtuous circle. c. convergence circle. d. divergence circle.