A consumer equilibrium is depicted using indifference curve analysis as:
a. the point where two indifference curves cross
b. the combination of two goods that minimizes total utility for a given level of income.
c. the combination of two goods located where the highest attainable indifference curve is just tangent to the budget line.
d. any combination of two goods where an indifference curve crosses the budget line.
c
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An externality arises when a person engages in an activity that influences the well-being of
a. buyers in the market for that activity and yet neither pays nor receives any compensation for that effect. b. sellers in the market for that activity and yet neither pays nor receives any compensation for that effect. c. bystanders in the market for that activity and yet neither pays nor receives any compensation for that effect. d. Both (a) and (b) are correct.
The national debt is ____ of the United States government and ___ of the people who hold it.
A. an asset; an asset B. a liability; a liability C. an asset; a liability D. a liability; an asset
If the Gini coefficient of Country A is 0.3 and the Gini coefficient of Country B is 0.45, we can conclude that
A. income is more evenly distributed among households in Country A than in Country B. B. wealth is more evenly distributed among households in Country A than in Country B. C. income is more evenly distributed among households in Country B than in Country A. D. wealth is more evenly distributed among households in Country B than in Country A.
What is the difference between economic efficiency and equity?
What will be an ideal response?