For a household in a (c,c') graph, the optimal consumption bundle is
A) to the left of the endowment point.
B) to the right of the endowment point.
C) on the endowment point.
D) dependent on other factors.
D
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If marginal profit is zero, then average profit is at a maximum.
Answer the following statement true (T) or false (F)
Which of the following would be a private cost of smoking to a cigarette smoker?
a. cost to a private firm of the higher health insurance premiums due to the hiring of a smoker b. cost to a private firm of the reduced productivity of a smoker, who misses days of work as a result of smoking c. cost to the city of extra park lawn cleanup due to the presence of cigarette butts d. price of a pack of cigarettes e. cost to the government to pay the hospital expenses of indigent private smokers
Since 2002, the Fed has shifted to expansionary monetary policy, then to restrictive policy, and then back to expansionary monetary policy. Policy shifts of this type are most likely to
a. promote economic stability and stimulate employment. b. keep the general level of prices relatively stable because the periods of restrictive policy will just offset the periods of expansion. c. help promote economic stability because changes in monetary policy can be counted on to exert a predictable impact on the economy quickly. d. promote instability because the time lags of monetary policy are long and variable.
When the dollar appreciates, U.S. net exports fall and aggregate demand decreases
Indicate whether the statement is true or false