Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false?
A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases.
B) If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve.
C) The indifference curve will be convex to the origin, that is, bowed in toward the origin.
D) If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.
A
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Which of the following is true?
A) Most entrepreneurs work very few hours. B) Entrepreneurs generally save less of their income than other Americans. C) If you want to make a lot of money, you had better figure out how to provide others with substantial value and find ways to discover and act on strategic opportunities. D) Additional years of schooling will substantially increase your earnings even if they fail to increase your productivity and ability to provide others with things that they value.
Which statement is true?
A. The federal, state, and local governments collect a combined total of over 40 percent of our GDP in the form of taxes. B. A rich person has a much lower marginal tax rate on their personal income taxes today than she did in 1980. C. The federal government spends more on foreign aid than it does on Medicare. D. Most Americans pay more in federal personal income tax than they do in payroll tax.
Which of the following does not explain why consumers buy products that many other consumers are already buying?
A) network externalities B) the satisfaction people derive by being viewed as "fashionable" C) cost-effective way to gather information about a product D) differences in tastes and preferences
(a)What happens to the fundamental value of a country's exchange rate when it raises its money supply in a fixed exchange-rate system? Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value?(b)What happens to the fundamental value of a country's exchange rate when the foreign country raises its money supply? Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value?(c)So, if a country wants to maintain its official rate equal to its fundamental value, what must it do when the foreign country raises its money supply? What happens to inflation?
What will be an ideal response?