At two points on an indifference curve,
a. the bundles of goods yield the consumer the same satisfaction.
b. the consumer has the same income.
c. the bundles of goods cost the consumer the same amount.
d. the consumer has the same marginal rate of substitution.
Answer: a. the bundles of goods yield the consumer the same satisfaction.
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Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must:
A) increase consumers' incomes. B) print more money. C) Borrow money in the financial markets. D) lower interest rates.
The desire of governments to be able to use both monetary and fiscal policies to pursue domestic goals of stable prices and full employment has been a reason that:
A. countries have tried to stabilize their exchange rates at a high level. B. flexible exchange rates have been replaced with fixed exchange rates. C. fixed exchange rates have been replaced with flexible exchange rates. D. countries have tried to stabilize their exchange rates at a low level.
Which statement is true?
A. Xn has always been positive. B. Xn has always been negative. C. Xn had been positive from 1900 until the 1970s. D. Xn had been negative from 1900 until the 1970s.
Two taxes that have consumption as a tax base are ____ taxes and _____ taxes
a. income; general sales b. general sales; valued-added c. excise; income d. estate; retail sales