Typically, the utility function is assumed to be
A. linear
B. lexicographic
C. concave
D. non-time specific
Answer: C. concave
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The aim of development aid is basically to:
A) eradicate poverty. B) minimize international trade. C) eradicate corruption. D) boost population growth.
Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A. the number of resources used should be decreased since society must protect its scarce resources. B. the concept of opportunity costs does not exist. C. the economy is producing efficiently. D. more goods will be available than customers want to buy.
Which of the following statement(s) is (are) false?
A) The slope of any indifference curve is the MRS. B) The slope of any budget line is negative and related to the ratio of the prices of the goods. C) The slope of any linear demand curve is the own-price elasticity. D) None of the above (that is, all statements are true).
Suppose you have money income of $10, all of which you spend on Coke and popcorn. In the diagram, the prices of Coke and popcorn respectively are:
A. $.50 and $1.00.
B. $1.00 and $.50.
C. $1.00 and $2.00.
D. $.40 and $.50.