A movement of the price index from 108 to 112 represents an improvement in the cost of living
a. True
b. False
Indicate whether the statement is true or false
False
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The three acts that form the basic machinery behind the U.S. anti-trust laws are the Sherman Act of 1890, the Federal Trade Commission Act of 1914, and the Robinson Patman Act of 1836
Indicate whether the statement is true or false
A consumer's budget constraint is drawn on a graph with the number of sandwiches measured along the horizontal axis and the number of bowls of soup measured along the vertical axis. Hold the consumer's income and the price of a sandwich fixed, and increase the price of a bowl of soup. Describe the effect on the budget constraint
Suppose the rate of inflation rate is two percent and the nominal interest rate is five percent. According to the Fisher Effect, an increase in the inflation rate to six percent should cause the nominal interest rate to increase from five percent to _____ in the long run
Fill in the blank(s) with correct word
Which of the following is correct concerning a risk-averse person?
a. She would not play games where the probability of winning and losing a dollar are the same. b. She might not buy health insurance if she thinks her risks are low. c. Her marginal utility of wealth decreases as her income increases. d. All of the above are correct.