An indifference curve shows
A. the combinations of goods that generate the same ratio of marginal utilities.
B. the set of consumption alternatives that yield the same amount of total utility.
C. the set of consumption alternatives that yield the same amount of marginal utility.
D. the combinations of goods that a consumer does not like very much.
Answer: B
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Which of the following would cause a decrease in the price of a good?
A) an increasing shift in the supply of a good and no shift in demand B) a decreasing shift in the supply of a good and no shift in demand C) an increasing shift in the demand for good and no shift in supply D) an increasing shift in the demand for good and a decreasing shift in supply
Which of the following is not true of a recession?
a. The economy is overheated. b. Cyclical unemployment is high. c. Unemployment is caused by insufficient spending. d. If the economy is in equilibrium, the aggregate expenditure line is too low to create an intersection at the full-employment level. e. If employers hired more workers to reduce unemployment, they would be unable to sell all the extra output those workers would produce.
In order to be successful in a market economy, entrepreneurs must
A) use only personal financial capital so they can avoid interest payments on borrowed funds. B) produce a good that consumers value less than the resources used to produce it. C) combine resources in a manner that increases their value. D) produce anything that consumers value, regardless of cost.
According to some economists, the private sector is more efficient than the public sector mainly because:
A. the private sector has a clear test of performance: profit and loss. B. wages, salaries, and fringe benefits are higher in the private sector. C. worker turnover is higher in the public sector. D. of extensive negative externalities in the public sector.