The fact that indifference curves are downward sloping
A) is not true.
B) follows from the fact that more is preferred to less.
C) follows from the property that the consumer likes diversity in his or her consumption bundle.
D) follows from the property that consumption and leisure are normal goods.
B
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Adam Smith, in his book, The Wealth of Nations, advocated:
a. socialism. b. an economy guided by an "invisible hand." c. government control of the "invisible hand." d. the adoption of mercantilism.
Currently a country has real GDP per person of 500 . Raising capital per worker by one would increase output per worker by 4 . Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?
a. real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3 b. real GDP per person is 520 and raising capital per worker by one would increase output per worker by 5 c. real GDP per person is 480 and raising capital per worker by one would increase output per worker by 3 d. real GDP per person is 480 and raising capital per worker by one would increase output per worker by 5
In an economy in which labor is mobile and homogeneous, the wages between industries:
a. will be equal. b. will be very unequal. c. will be less in the export industry. d. will be unequal because in some firms the management is more fair to its workers.
Which of the following is considered a benefit of inflation?
A) the option of a negative real interest rate B) money illusion C) seignorage D) all of the above E) none of the above