An indifference map shows
A. that utility is at a maximum at the origin.
B. that money income is constant, but product prices may change.
C. that curves closer to the origin represent higher levels of utility.
D. that curves further from the origin represent higher levels of utility.
Answer: D
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If the cross-price elasticity of demand between two products is positive, we can conclude that the two products are substitutes
Indicate whether the statement is true or false
The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Suppose a free market exists. An import quota of 30 units would
A) cause consumer surplus to fall by "e." B) cause social welfare to fall by $30. C) increase producer surplus by "d." D) have no effect.
Grace just got her first cell phone, an iPhone, for graduation. She tosses her iTouch in a drawer and never touches it again, even though she could easily sell it for $75 on Craigslist. Grace's choice is ___________ because ________________.
A. rational; she weighs the $200 she paid for the iTouch and the $75 she could sell it for now B. irrational; she weighs the $200 she paid for the iTouch and the $75 she could sell it for now C. rational; she would not pay $75 to buy the iTouch today D. irrational; she would not pay $75 to buy the iTouch today
If the actual real wage exceeds the equilibrium wage, there will be an excess supply of labor
a. True b. False