An indifference curve shows the combinations of two goods that yield the same level of utility.
Answer the following statement true (T) or false (F)
True
Each indifference curve shows the combination of two goods that yield the same utility. The consumer is 'indifferent' to these various combinations that lie on the same utility curve.
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If the equilibrium exchange rate is 15 pesos per dollar and the central bank fixes the exchange rate at 17 pesos per dollar then we can conclude that the peso is
(a) appreciated. (b) depreciated. (c) overvalued. (d) undervalued.
Which of the following is the best example of substitutes?
a. coffee and cream b. videotapes and VCRs c. money and biscuits d. tortillas and salsa e. hiking boots and athletic shoes
Fairy Cakes sells birthday cakes in a perfectly competitive market where the market price is $25 per cake. If it decides to increase its production from 10 cakes a week to 12 cakes a week, its weekly revenue will _____
a. decrease by $50 a week b. increase by $25 a week c. increase by $50 a week d. decrease by $20 a week
An insolvent bank's assets are worth less than its liabilities
a. True b. False Indicate whether the statement is true or false