Indifference curve analysis is based on a mythical unit called a util
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $500 million B) $300 million C) $800 million D) $200 million E) $0
According to the traditional interest-rate channel, expansionary monetary policy lowers the real interest rate, thereby raising expenditure on
A) business fixed investment. B) government expenditure. C) consumer nondurables. D) net exports.
Politicians and economists who are generally conservative tend to believe that
a. the self-correcting mechanism is slow and unpredictable. b. the short-run Phillips curve is relatively steep. c. the costs of unemployment are high. d. expectations in reaction to policy measures are very slow to change.
One of the key criteria used to distinguish among different economic systems is:
a. how are allocation decisions made. b. when are allocation decisions made. c. where are allocation decisions made. d. what allocation decisions are made.