An assumption underlying indifference curve analysis is that MUx/MUy ________ as less of X and more of Y is consumed.
A. decreases
B. remains constant
C. always equals one
D. increases
Answer: D
You might also like to view...
How does each of the following shift the supply of loanable funds and the demand for loanable funds curves? What is the effect of each on the equilibrium real interest rate and equilibrium quantity of loanable funds?
a. Households' disposable incomes increase b. An increase in expected profit
From 1860 to 1910, international net capital flow into the U.S
(a) was positive when the U.S. economy expanded. (b) was neutral and not influenced by the U.S. business cycle. (c) was negative when the U.S. economy grew. (d) was positively impacted by U.S. discussions about and actual restrictions on immigration.
A country has net capital outflow of $40 billion. Which of the following is consistent with this net capital outflow?
a. It has -$40 billion of net exports. b. Purchases of foreign assets by domestic residents exceed purchases of domestic assets by foreign residents by $40 billion. c. Its saving is $35 billion and its domestic investment is $5 billion. d. All of the above are consistent with a net capital outflow of $40 billion.
If the U.S. imposes an import quota on clothing, then the
a. supply of dollars in the market for foreign-currency exchange shifts right. b. supply of dollars in the market for foreign-currency exchange shifts left. c. demand for dollars in the market for foreign-currency exchange shifts right. d. demand for dollars in the market for foreign-currency exchange shifts left.