An indifference curve provides the set of consumption alternatives that
A. can be purchased for the same amount of money.
B. maximize the utility of the consumer.
C. yield the same marginal utility for the last unit consumed of each good.
D. yield the same total amount of satisfaction.
Answer: D
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The symbiotic relationship between mass production and mass consumption was best personified by
A. John D. Rockefeller. B. Andrew Carnegie. C. Henry Ford. D. John Deere.
The wage earned by a domestic resident for working in a foreign company for a month is an example of a(n) ________
A) factor payment from foreigners B) transfer payment from foreigners C) export by the domestic resident D) import by the domestic resident
Suppose Larry's Lariats produces lassos, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. The total costs for this company would include:
A. the cost of rope. B. employee's wages. C. the rope-cutting machine. D. All of these expenses would be included in total cost.
Refer to the graph. Consider an asset represented by point F. The process of arbitrage will draw investors to the higher rates of return,
A. increasing both price and the average expected rate of return.
B. changing the intercept of the Security Market Line until it intersects point F.
C. changing the slope of the Security Market Line until it intersects point F.
D. increasing the asset's price and lowering the average expected rate of return.