Indifference curves:
a. may sometimes intersect.
b. are contour lines only of a linear utility function.
c. are convex if the utility function is quasi-concave.
d. shift when prices change.
c
You might also like to view...
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
What are the factors that favor high incentive pay for an employee? Explain which of the five factors is the most important.
What will be an ideal response?
Economist A believes that the expansionary fiscal policy --- in the form of increased government spending --- should be implemented to remove the economy from the recessionary gap it is currently in. This economist probably believes that
A) crowding out will not present much of a problem. B) crowding out will be a big problem. C) crowding out is irrelevant to the degree of effectiveness of fiscal policy. D) zero crowding out is unlikely. E) c and d
You may receive a margin call if
A. You have a long (buying) futures position and prices increase B. You have a long (buying) futures position and prices decrease C. You have a short (selling) futures position and prices increase D. Both B and C.