Refer to the above figure. Given the indifference map and budget constraint represented above, the consumer will maximize utility when she consumes at
A. point A.
B. point B.
C. point C.
D. either points A or B.
Answer: C
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All these curves are U-shaped except
a. Average fixed cost curve b. Marginal cost curve c. Average variable cost curve d. Average total cost
Suppose the unemployment rate in 2001 was 4.7, lower than the 5.4 percent unemployment rate that policymakers think is consistent with price level stability. Accepting the dictates of the Phillips curve, they would probably forecast for 2002
a. a higher rate of inflation b. a lower rate of inflation c. a higher rate of GDP growth d. a recession e. an economic stabilization at 4.7 percent unemployment
If the economy is in an inflationary gap, and the government attempts to balance the budget, the effect will be to
a. counteract inflation. b. reduce the trade deficit. c. continue inflationary pressures. d. increase unemployment.
Company towns have situated largely in the
A. East. B. South. C. Midwest. D. West.