If the utility for two goods "x" and "y" can be measured as U = x, then it can be concluded that
A) "x" and "y" are perfect complements.
B) "y" is a "bad".
C) the indifference curves on the x,y graph are upward sloping where "x" is measured on the horizontal axis.
D) the indifference curves on the x,y graph are vertical where "x" is measured on the horizontal axis.
D
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The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the
A) supply is perfectly elastic. B) supply is perfectly inelastic. C) demand is perfectly elastic. D) None of the above answers is correct.
The supply of loanable funds has a ________ slope because the greater the interest rate, the ________ the reward to saving, and the ________ the quantity of loanable funds supplied
A) positive; lesser; lesser B) negative; lesser; greater C) positive; greater; lesser D) positive; greater; greater
Market equilibrium occurs where the quantity supplied is equal to the quantity demanded
Indicate whether the statement is true or false
Which of the following measures gives the earliest warning of increasing inflation?
A) the Consumer Price Index B) the Producer Price Index C) the Personal Consumption Expenditure Index D) All of these should signal the same short-run inflation.