An indifference diagram has movies on the vertical axis and sodas on the horizontal axis. As the consumption of sodas increases, the marginal rate of substitution ________ and the indifference curve becomes ________
A) falls; flatter
B) falls; steeper
C) rises; flatter
D) rises; steeper
A
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The banking system in the U.S. is based on:
A) 100 percent reserve banking. B) fractional reserve banking. C) 0 percent reserve banking. D) none of the above.
In a monopoly
a. the industry has high barriers to entry b. the industry has high barriers to exit c. the industry has high barriers to entry and exit d. the industry has no barriers to entry or exit
When will a shortage occur in a market?
a. When the actual price is lower than the equilibrium price b. When quantity supplied is greater than the equilibrium quantity c. When the quantity that consumers are willing and able to purchase decreases d. When the quantity available at zero price is insufficient to meet demand e. When a price floor is set in the market
When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP
a. True b. False Indicate whether the statement is true or false