A consumer is in equilibrium when the consumption point is on
A) the budget line.
B) an indifference curve.
C) the highest indifference curve that just touches the budget line.
D) none of the above.
C
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Consider an Edgeworth economy where there are two citizens, Mr. Cortopassi and Ms. Thomas. There are only two goods to be consumed in the economy, Beer and Pretzels. The total amount of Beer is 12 units. The total amount of Pretzels is 12 units. Answer the following: Suppose Mr. Cortopassi has utility for the two goods characterized as U C (B,P) = B + P. Ms. Thomas's utility function is U T (B,P) = B + P. Identify the points that are Pareto efficient.
What will be an ideal response?
Which group votes on the open-market operations that are used to control the U.S. money supply and interest rates?
A. The 12 Federal Reserve Banks. B. The Federal Reserve System. C. The Board of Governors of the Federal Reserve System. D. The Federal Open Market Committee (FOMC).
Develop a simple model of inflation by identifying at least two exogenous variables and describing, briefly, how the value of these exogenous variables will impact the rate of increase in the overall level of prices in the economy
What will be an ideal response?
If a nation borrows $250,000 each in the first, fourth, and fifth year and repays $50,000 each in the second and the third year, the value of government debt at the end of the fifth year is _____
a. $500,000 b. $650,000 c. $100,000 d. $250,000