To derive the demand curve from the indifference map
A. vary income while holding the prices constant.
B. vary the price of one good while holding the price of the other good and income constant.
C. vary the prices of both goods while holding income constant.
D. vary the price of one good and income while holding the price of the other good constant.
Answer: B
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Any change that affects the entire schedule relating the quantity of labor and the value of the marginal product of labor will ________, assuming all else equal
A) cause the labor demand curve to become vertical B) shift the labor demand curve C) cause a rotation in the labor demand curve D) be caused by a change in the wage rate
The hypothesis that changes in the money supply lead to an equiproportional change in the price level is called
A) the quantity theory of money. B) the classical theory of money. C) the Keynesian theory of money. D) the fractional theory of money.
The value of the tax multiplier is always positive because an increase in tax increases the marginal propensity to consume
a. True b. False Indicate whether the statement is true or false
In a world of perfect knowledge and communication, competitive markets, and no uncertainty,
a. there would be neither economic profits nor economic losses. b. economic profits would exist, but losses would be eliminated. c. economic profits and losses would exist to a greater degree than presently is the case. d. there would be economic profits; there is not enough information to comment on economic losses.