In a two-agent two-good economy, a Pareto-efficient allocation implies that
A) no further mutually beneficial trades are possible.
B) agents' indifference curves intersect each other.
C) agents' marginal rate of substitution are different.
D) agents' marginal rate of transformation are different.
A
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As we observe the cost curves graph, we see that the
A) MC curve intersects the ATC curve at its maximum. B) MC curve cannot be U-shaped. C) ATC curve always has a negative slope. D) MC curve intersects the AVC curve and ATC curve at their minimums. E) MC constantly falls as output increases.
Refer to Figure 2-3. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph B E) either Graph B or Graph C
Which of the following is the largest asset on a consolidated balance sheet for a commercial bank?
a. Checkable deposits b. government bonds c. Cash assets, including reserves d. Loans e. Borrowing from the Federal Reserve
A change in the price of a competing product will shift demand.
a. true b. false