An indifference curve shows the
A. Combinations of goods giving equal utility to a consumer.
B. Optimal consumption combinations between two goods.
C. Maximum utility that can be achieved for a given consumer budget.
D. Maximum utility that can be achieved for different amounts of a good.
Answer: A
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The process of adding more capital per worker is called capital deepening
a. True b. False Indicate whether the statement is true or false
All of the following observations concerning the elasticity formula are true except
a. the changes with which it deals is measured as a percentage change. b. each of the percentage changes is calculated in terms of the average values. c. the calculation considers both positive and negative signs. d. each percentage change is taken as an "absolute value."
Which of the following explains why the original Phillips curve relation disappeared or, as some economists have remarked, "broke down" in the 1970s?
A) Individuals assumed the expected price level for the current year would be equal to the actual price level from the previous year. B) Individuals assumed that expected inflation would be zero C) Individuals changed the way they formed expectations of inflation. D) Monetary policy became contractionary. E) More labor contracts became indexed to changes in inflation.
Prices help coordinate all phases of production so producers have the right quantities of resources they need, in the right place, to operate
Indicate whether the statement is true or false