Total utility is constant along a given indifference curve
Indicate whether the statement is true or false
TRUE
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Referring to Table 12.2, if the nominal interest rate is 9.5 percent and there is no inflation, which investments will be undertaken?
A) E and D B) E C) C, D, E D) none of the above
Describe the argument that education generates a positive externality. Why might this externality not be relevant in terms of economic efficiency?
What will be an ideal response?
One reason for the huge investment by China into the US economy is the:
A. the desire of China to ‘sink’ the US economy. B. Chinese investors view that US investments are less stable. C. large savings rate in China that encourage capital outflow. D. low savings rate in China which makes the cost of borrowing very low in China.
For economists, the word "utility" means:
A. versatility and flexibility.
B. rationality.
C. pleasure or satisfaction.
D. purposefulness.