For a risk-averse individual, as wealth increases, total utility
A) increases at a decreasing rate.
B) increases at a constant rate.
C) increases at an increasing rate.
D) is constant.
A
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The MRS of the indifference curves in the above figure
A) equals 1/2. B) equals 2. C) changes when moving along any one of the curves. D) is constant along a particular indifference curve, but changes from one indifference curve to the next.
If four large commercial contractors meet and collude on the bids they are going to submit for a large government road contract, this is an example of ________.
A) bid suppression B) output restrictions C) bid rigging D) market division
According to the above table, there is an excess quantity demanded of 1500 DVDs at the price
A) $14. B) $12. C) $10. D) $8.
Which of the following techniques adopted by the central banks around the world have helped them to achieve credibility?
a. Maintaining a low rate of inflation through tight monetary policies b. Publicly announcing a target rate of inflation c. Refusing to bail out the commercial banks at times of failure d. Supporting all government budget deficits through deficit financing e. Reducing unemployment amidst high inflation