Which of the following best describes why indifference curves cannot cross?
a. If indifference curves cross, there are situations where individuals are indifferent between bundles where one bundle contains strictly more of both goods than the other bundle.
b. If indifference curves cross, individuals are not necessarily consuming along their budget line
c. If indifference curves cross, the marginal rate of substitution can be both increasing and decreasing at a specific point.
d. If indifference curves cross, the goods can be both substitutes and complements.
a
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Five people want to have a lighted garden built at the entrance to their neighborhood. The difficulties they experience in getting one another to commit to paying for the garden are best described as
A) property rights. B) transactions costs. C) negative externalities. D) rivalry.
Everything else held constant, when output is ________ the natural rate level, wages will begin to ________, increasing short-run aggregate supply
A) above; fall B) above; rise C) below; fall D) below; rise
Regulators often adopt policies that benefit
A) consumers and injure producers. B) the firms regulated rather than consumers. C) only the government. D) no one.
After graduating from high school, Steve had the following three choices for his immediate future, listed in order of preference: (1) attend our campus, (2) work in a printed circuit board factory, or (3) attend a rival college. His opportunity cost of going to college here includes which of the following?
a. The cost of books and supplies at the rival college b. The income he could have earned at the printed circuit board factory plus the direct cost of attending college here (tuition, textbooks, etc.) c. The benefits he could have received from going to the rival college d. Only the tuition and fees paid for taking classes here e. Cannot be determined from the information given