A risk averse person's utility of wealth curve has a
A) positive slope and becomes steeper to the right.
B) positive slope and becomes flatter to the right.
C) negative slope and becomes steeper to the right.
D) negative slope and becomes flatter to the right.
B
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Producer surplus measures the
a. benefits to sellers of participating in a market. b. costs to sellers of participating in a market. c. price that buyers are willing to pay for sellers' output of a good or service. d. benefit to sellers of producing a greater quantity of a good or service than buyers demand.
Identify the four major methods the Fed uses to control the money supply. Give two examples of situations in which the Fed might use one of these methods and explain why that method is best for the given situation.
What will be an ideal response?
The substitution effect of an inferior good is positive.
a. true b. false
Where the aggregate demand curve and the short-run aggregate supply curve intersect
A) the long-run aggregate supply curve must also intersect at the same point. B) inflation must be increasing. C) structural and frictional unemployment equal zero. D) the economy is in short-run macroeconomic equilibrium.