Different points along a downward-sloping demand curve come from
A. tangencies between indifference curves and budget lines that represent different prices of the good.
B. tangencies between indifference curves and budget lines that represent different income levels.
C. different points along any one budget line when the prices of the goods are held constant.
D. different points along any one indifference curve when the prices of the goods are held constant.
Answer: A
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Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price, the difference between the two is:
a. consumer surplus. b. economic profit. c. marginal revenue. d. producer surplus. e. a shortage.
Markets provide the efficient amount of a good or service when
a. externalities are present. b. monopoly exists. c. public goods are present. d. competition is present and externalities and public goods are absent.
Joe's income is $500, the price of food (F, y-axis) is $2 per unit, and the price of shelter (S, x-axis) is $100. Which of the following represents his marginal rate of transformation of food for shelter?
A) -5 B) -50 C) -.02 D) None of the above.
Which one of the following are the components of aggregate expenditure?
a. household consumption, business investment, government spending for goods and services, and net exports b. household consumption, business investment, government transfer payments, and net exports c. household consumption, business investment, government spending for goods and services, and exports d. household consumption, business investment, government spending for goods and services, and saving e. household consumption, business inventories, government spending for goods and services, and net exports