The slope of an indifference curve tells us:
A. the marginal utility the consumer receives from consuming an additional unit of a good.
B. how much of one good is required to compensate the consumer for giving up some of another good.
C. the amount of utility a consumer receives from consuming a bundle of goods.
D. the rate at which utility changes as more of one good is consumed.
B. how much of one good is required to compensate the consumer for giving up some of another good.
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Whenever a buyer and a seller agree to trade
A) they must have identical opportunity costs in producing their respective products. B) the agreement is made based on absolute advantage. C) one party will always be worse off. D) both must believe they will be made better off.
Diseconomies of scale exist for all of the following reasons except
a. bureaucratic inefficiencies b. management problems c. failures in information flows d. firm size is too small e. organizational problems
Answer the following statement(s) true (T) or false (F)
1. As long as it is generally accepted in exchange for services and goods, anything can be considered money. 2. Money has two main economic functions: to act as a medium of exchange and to act as a store of value. 3. Naya knows that a pound of wild rice costs $3.49 and that a pound of granulated sugar costs $0.89. The fact that she can determine this illustrates money’s function as a means of stored value. 4. Fiat money is money that has been established by custom or tradition. 5. Savings deposits are considered part of the M2 definition of money, but not the M1 definition.
A depreciation of the U.S. dollar will encourage, other things the same ________
A) the purchase of foreign goods by foreign economic agents B) the purchase of foreign goods by U.S. economic agents C) the purchase of U.S. assets by foreign economic agents D) the purchase of foreign assets by U.S. economic agents