If all consumers satisfy economists' assumptions regarding utility, then
a. they will each choose a consumption bundle that is inside the budget line
b. everyone will choose the same consumption bundle
c. everyone will have the same budget line
d. all consumers will react in the same way to a price change
e. each person will choose a consumption bundle on his or her budget line
E
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Can phenomena as diverse as pencil production and highway traffic be legitimately studied by economists?
A) No. One is properly in the field of business, the other in city planning. B) No. Although production is properly in the field of economics, highway traffic is only properly studied by planners and environmentalists. C) Yes. Both phenomena emerge from choices of individuals with limited information. D) Yes. Both phenomena emerge in the market system without any human intervention.
Booms and recessions are transmitted to other countries
a. True b. False Indicate whether the statement is true or false
The required reserve ratio is set by the
A) U.S. Congress. B) President of the United States. C) Secretary of the Treasury. D) Federal Reserve. E) Director of Monetary Affairs.
Money illusion:
a) is the misconception that prices have changed; it occurs when the Federal Reserve reduces the money supply. b) occurs when output rises. c) occurs only in the long run. d) is the misconception that one is wealthier; it occurs when the money supply grows.