Consumer equilibrium occurs where the budget line is ____ to the ____ possible indifference curve
a. tangent; highest
b. equal; lowest
c. marginal; maximum
d. differential; highest
a
You might also like to view...
The magnitude of the slope of the budget line
A) is defined as marginal rate of substitution. B) equals the relative price of the good measured along the horizontal axis. C) increases when income increases. D) decreases when income increases.
The above figure shows four different markets with changes in either the supply curve or the demand curve
Assuming coffee and tea are substitutes, which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop? A) Graph A B) Graph B C) Graph C D) Graph D
Which of the following is not a benefit to lenders/investors of financial intermediation?
a. Higher yield than the direct market. b. Lower risks than the direct market. c. More diversification than the direct market. d. All the above are benefits to lenders. e. Lower transaction costs than the direct market.
The expected future money supply does not have an effect on:
A. expected future inflation. B. the current price level. C. the current nominal money supply. D. the future price level.