Consumers are sovereign when
A. a few consumers exercise coercion on sellers and other consumers.
B. they have the freedom to decide what they wish to purchase.
C. they can prevent market failure.
D. prices are decided by sellers.
Answer: B
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According to Keynesian theory, the most important determinant of saving and consumption is
A) the stock of durable goods in the consumer's possession. B) the stock of liquid assets. C) the level of real disposable income. D) the level of consumer indebtedness.
Who among the following benefits from inflation?
a. Patrick Roy who borrowed $10,000 from a bank to pay the downpayment on a house he bought in Denver b. The Denver National Bank who provided Patrick Roy with the $10,000 to make the downpayment c. Jerry Swanson, a landlord who holds a 5-year lease on an apartment rented to students off campus at the University of Arizona d. Peter Schran who loaned Larry Neal $500 without charging Larry any interest e. Ian McDonald who is retired and lives on his $700 per week pension
In this graph, what is different about equilibrium levels E1 and E3 compared to e2?
a. Price levels are higher at both E1 and E3 than at e2.
b. Price levels are lower at both E1 and E3 than at e2.
c. Level e2 is sustainable, whereas levels E1 and E3 are not.
d. Levels E1 and E3 are both sustainable, whereas e2 is not.
The law of increasing opportunity cost helps to explain why PPF's are typically bowed-outward
Indicate whether the statement is true or false