An indifference curve cannot be positively sloped because
A. a point to the right of another point will represent a lower quantity of both goods and a reduction in utility.
B. the law of diminishing marginal utility would be violated.
C. a point to the right of another point will represent a higher quantity of both goods and an increase in utility.
D. the substitution effect would be violated.
Answer: C
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A) to promote the interests of the general public. B) to promote the interests of the Fed's principal—the President of the United States. C) in order to increase its power, influence, and prestige. D) in order to make sure its agents—commercial banks—carry out its wishes.
After September 11, 2001, a small group of economists argued that the economy's self-correcting mechanism would work to counteract the recessionary effects of the attack
a. True b. False Indicate whether the statement is true or false
Other things being equal, a decrease in the price of ethanol will
A. decrease the use of corn in ethanol production but increase the use of corn in HFCS (another product produced from corn). B. decrease the use of corn in ethanol production and in HFCS. C. decrease the use of corn in all corn uses. D. increase the use of corn in HFCS.
At equilibrium, quantity demanded is _____ equal to quantity supplied.
A. always B. usually C. sometimes D. never