An indifference curve:
A. may be either upsloping or downsloping, depending on whether the two products are
complements or substitutes.
B. is downsloping and convex to the origin.
C. is upsloping and has a constant slope.
D. is downsloping and concave to the origin.
Answer: B
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A frim wishing to acquire a monopoly position would be willing to spend an amount up to its anticipated monopoly profit in rent-seeking activities
a. True b. False
Market interest rates are determined solely by people's willingness to loan funds, that is, their rate of time preference
Indicate whether the statement is true or false
A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?
a. A ceiling on rents reduces the quantity and quality of housing available. b. Fiscal policy has a significant stimulative impact on a less than fully employed economy. c. The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. d. The United States should implement universal health care for its citizens.
Which of the following financial assets is most likely to have a higher amount of risk than the others?
A. Stocks B. Mutual funds C. Savings accounts D. Bonds