When two goods are perfect complements, the indifference curves are
a. positively sloped.
b. negatively sloped.
c. straight lines.
d. right angles.
d
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Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption. Suppose the woman is more selfish than the woman UM = CM1/2 UW1/2 UW = CW2/3 UM1/3 They will maximize the joint happiness (UM + UW) where
a. CM = 100; CW = 0 b. CW = 100; CM = 100 c. 50 < CM < 100; 0 < CW < 50 d. 50 < CW < 100; 0 < CM < 50
Adam Smith in The Wealth of Nations argued that
A. the social order needs the guidance of the government's visible hand. B. society works best when people act in their own interest. C. society works best when people act unselfishly. D. society works best when people act as if they were invisible to others.
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. If the overall rate of inflation in the economy was 4.5%, which of the following statements is true?
A. The real price of all three goods decreased. B. The real price of amusement park tickets fell, and the real price of bowling balls and camouflage neckties rose. C. The real price of all three goods increased. D. The real price of amusement park tickets rose, and the real price of bowling balls and camouflage neckties fell.
Refer to Exhibit 9.2, which shows the cost and revenue curves faced by a monopolist. The demand curve faced by the monopolist at the profit-maximizing output is _____
A) perfectly price elastic.
B) price elastic.
C) price inelastic.
D) unit price elastic.
E) perfectly price inelastic.