To maximize satisfaction, the consumer must reach the lowest indifference curve that can be reached with a given level of income
a. True
b. False
Indicate whether the statement is true or false
False
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Financial intermediaries reduce transactions costs by
A) charging fees to small savers. B) charging fees to small investors. C) taking advantage of economies of scale. D) avoiding risky investments.
The redirection of macroeconomic policy that took place during the Reagan and both Bush administrations was inspired by
a. supply-side economics. b. real business cycle theory. c. new classical economics. d. new Keynesian directions.
Which of the following is an example of the law of supply?
A) The price of gum has increased so producers are making more gum. B) The price of labor has increased and producers decrease supply. C) The amount of a good purchased increases when the price decreases. D) Producers provide less of a good when the price increases.
An economist might say that people choose not to get a college degree because they may have to borrow money to go to college, and the interest they have to pay on that loan in the future will affect their decisions today. This is an example of which kind of statement?
a. positive statement b. normative statement c. trade-off statement d. allocative statement