Indifference curves typically
a. cross each other
b. have a positive slope.
c. are convex from the origin.
d. are concave from the origin.
c
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Use the following figure to answer the next question.
A shift from AD1 shifts to AD2 would be consistent with what economic event in U.S. history?
A. demand-pull inflation in the late 1960s B. recession in 2007-09 C. cost-push inflation in the mid-1970s D. full-employment in the late 1990s
Mac can bake more cookies than Monica per hour. It must be true that
A) Monica has an absolute advantage in cookie baking. B) Mac has an absolute advantage in baking cookies. C) Mac has a comparative advantage in baking cookies. D) Monica has a comparative advantage in baking cookies. E) Mac cannot benefit by trade between the two of them.
If a perfectly competitive wheat farmer is maximizing its profit and then increases its output, the farmer's
A) total revenue increases, but total cost rises by more so that the farmer's total profit decreases. B) total revenue decreases and total cost increases, both thereby decreasing the farmer's total profit. C) total revenue does not change but total cost increases, thereby decreasing the farmer's total profit. D) marginal revenue increases, but so does marginal cost, so that the farmer's total profit increases. E) total revenue and total cost both rise, but the effect on the farmer's total profit is uncertain.
Which of the following does NOT help explain why oligopolies exist?
A) economies of scale B) mergers C) product homogeneity D) barriers to entry