An indifference curve
A) must be convex to the origin.
B) must be concave to the origin.
C) may be convex or concave to the origin.
D) depends on the prices of the products and the consumer's income.
Answer: A
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The menu cost theory states that
A) wages depend on the productivity of workers. B) economic agents quickly learn the likely responses of the Fed to changes in unemployment. C) the economy is characterized by perfect competition. D) prices are not fully flexible because it is costly for firms to change prices every time there is a demand change.
In an unregulated market for healthcare, there is
A) a deadweight loss from over-providing healthcare. B) a deadweight loss from under-providing healthcare. C) no deadweight loss. D) Any of the above could be correcting depending on how the marginal cost paid by producers compares to the marginal social cost.
The population of tuna in the Pacific Ocean unexpectedly soars so it becomes easier to catch tuna. Which of the following would most likely happen first?
a. The price of tuna would remain constant. b. The price for tuna would increase c. The supply of tuna would increase. d. The demand for tuna would increase.
The slope of money demand curve illustrates the idea that there is
a) a positive relationship b/w the interest rate and the quantity of money demanded b) a positive relationship b/w the price level and the quantity of money demanded c) a negative relationship b/w the interest rate and the quantity of money demanded d) a negative relationship b/w the value of transactions and the quantity of money demanded e) none of the above