Why is the indifference curve convex or bowed inward?
A. As you consume more of one good you are willing to give up less of the other good.
B. As you consume less of one good you are willing to give up less of the other good.
C. As you consume more of one good you are willing to give up more of the other good.
D. As you consume more of one good you are willing to give up half of the other good.
Answer: A
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The biggest problem caused by a deflation is that
A) prices fall. B) wages fall. C) interest rates rise. D) people cannot repay their debts.
If U.S. exports are $2.2 billion and our imports are $2.7 billion
A) the United States is lending to the rest of the world. B) U.S. national saving is too high. C) the United States is borrowing from the rest of the world. D) U.S. investment must decrease.
In the United States, most workers
a. work for government of some sort. b. produce raw materials for manufacturing. c. work in agriculture and farming. d. produce services rather than goods.
Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:
a) GDP in 2010 is $450 billion. b) NDP in 2010 is $450 billion. c) GDP in 2010 is $500 billion. d) inventories in 2010 fell by $50 billion.