For any given family of indifference curves, a consumer would prefer to be at a point:
A. on the indifference curve that is closest to the origin.
B. that is far to the right on an indifference curve.
C. that is far to the left on an indifference curve.
D. on the indifference curve that is farthest from the origin.
D. on the indifference curve that is farthest from the origin.
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In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments
A) above; surplus B) below; surplus C) above; shortage D) below; shortage
When diminishing marginal utility sets in, total utility must be negative
Indicate whether the statement is true or false
Suppose each of the following news items appears on the evening news. Which one would most likely cause consumption spending to increase?
a. "Layoffs reach record high" b. "Government to increase taxes with the start of the next quarter" c. "Stock market drops 10%" d. "Government to issue tax rebates at the end of next month" e. "Bankruptcies increase 20% over the last six months"
If a monopolist can price discriminate among buyers, it will charge buyers with more elastic demands a higher price.
Answer the following statement true (T) or false (F)