An indifference curve shows all:
A. possible equilibrium positions on an indifference map.
B. equilibrium combinations of two products that are obtainable with a given money income.
C. combinations of two products yielding the same total utility to a consumer.
D. possible combinations of two products that a consumer can purchase, given her income
and the prices of the products.
Answer: C
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Net exports is negative if
A) the value of exports exceeds the value of imports. B) the value of imports exceeds the value of exports. C) the tariff payments are included in the value of imported and exported items. D) too much production occurs in the exporting country during the year.
Trade between two countries can benefit both countries if
A) each country exports that good in which it has a comparative advantage. B) each country enjoys superior terms of trade. C) each country has a more elastic demand for the imported goods. D) each country has a more elastic supply for the exported goods. E) each country produces a wide range of goods for export.
Explicit provisions in a loan agreement that prohibit the borrower from engaging in certain activities is called:
A) credit rationing B) restrictive covenants C) credit-risk analysis D) adverse selection
In the long run, changing technology on average has led to: a. lower employment and lower wage rates
b. higher employment and lower wage rates. c. lower employment with wage rates unchanged. d. higher employment with wage rates unchanged. e. higher incomes and more leisure time.