Define the following terms:
a) Indifference curve
b) Utility
a) An indifference curve is a graph that shows all bundles of goods and services that provide an equal level of satisfaction for the consumer.
b) Utility refers to a measure of satisfaction or happiness that a consumer receives from consuming a good or service.
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Refer to Figure 18.3. In autarky, the maximum amount of pogo sticks that Livonia can produce is
A) 120. B) 100. C) 80. D) 40.
Which of the following would NOT be a way to increase the return on equity?
A) Buy back bank stock. B) Pay higher dividends. C) Acquire new funds by selling negotiable CDs and increase assets with them. D) Sell more bank stock.
Suppliers recognize there is a shortage in the market for their product when they notice that
a. the quantity supplied exceeds the quantity demanded b. the quantity demanded is falling c. inventories are falling d. production exceeds new orders for the product e. government economists announce a shortage exists
When car dealerships post high prices for their cars and then negotiate deals based on their estimate of how much each person will pay,
a. the dealership will lose revenue b. marginal revenue and marginal cost are being used to set prices and output c. few dealerships will be able to survive d. rent-seeking behavior will lead new dealerships to enter the market e. this is a form of price discrimination