A consumer satisfies the condition ________ when her indifference curve is just tangent to her budget constraint.
A. MUx/Px = MUy/Py
B. TUx = TUy
C. MUx = MUy
D. TUx/Px = TUy/Py
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
Which of the following is true of the crises experienced in the 1990s?
a. Most of the economic crises occurred in Mexico. b. Each of the countries affected by the crisis in Southeast Asia owed substantial long-term debt to foreigners. c. During this time, bank loans were a sizable fraction of GDP in all the crisis countries except Mexico. d. Stock prices dropped by an amount ranging from 21 percent in Malaysia to 35 percent in Korea. e. Exchange rate against the U.S. dollar dropped substantially in the Philippines.
Which statement is true?
A. There is no evidence whatsoever to support the contention that women, blacks, Hispanics, and other minorities are victims of employment discrimination. B. The relatively lower wages earned by women and minorities can be explained entirely by employment discrimination. C. The poverty of women, blacks, and Hispanics can be explained almost entirely by their low earnings. D. None of these statements are true.
Macroeconomics emerged as a separate subject largely in response to:
A. Irving Fisher's development of the quantity theory of money. B. Adam Smith's The Wealth of Nations. C. John M. Keynes's explanation of business cycles. D. Alfred Marshall's distinction between the long run and short run.