Martin is in the market for a new television set. He is deciding between two sets: one is rather expensive but offers a guarantee; the other has a lower price but offers no guarantee. Martin's decision to buy the expensive set would indicate that:
a. Martin does not know a good deal when he sees it.
b. Martin interpreted the guarantee as a signal of quality.
c. Martin did not shop around to get a better deal.
d. Martin is not maximizing his utility.
e. Martin has a high income.
b
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Because the value of the euro is determined by factors that affect the entire euro zone, during the recession of 2007-2009, individual countries using the euro
A) were able to use expansionary monetary policy to lessen the impact of the recession. B) were unable to have their exchange rates depreciate. C) were more insulated from unemployment increases than most countries. D) experienced a greater increase in exports than did most countries.
When a recessionary gap occurs
a. real output exceeds the natural level of output, and unemployment exceeds its natural rate b. real output exceeds the natural level, and unemployment is less than its natural rate c. real output is less than the natural level of output, and unemployment exceeds it natural rate d. real output is less than the natural level of output, and unemployment is less than its natural rate
Which of the following is NOT true about indifference curves?
A. Indifference curves show equally preferred combinations of two goods. B. Indifference curves are not straight lines because the marginal rate of substitution falls. C. Indifference curves shift when prices change. D. Indifference curves slope downward.
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. The government setting the price of pencils at $0.50 would be an example of an effective
A. price shortage. B. price floor. C. price ceiling. D. market equilibrium.