Answer the following statement(s) true (T) or false (F)
1. An indifference curve is a construct used by economists to show how tastes for an individual change.
2. There are an infinite number of choices faced by a consumer that are shown along an indifference curve.
3. Indifference curves fill the fourth quadrant of the plane.
4. If the marginal value of beef is $8 per pound, then the consumer is willing to pay at most $8 for an additional pound of beef.
5. The marginal value of a good is the dollar value that the consumer receives, on average, from each unit of the good purchased.
1. False
2. True
3. False
4. True
5. False
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Over the previous year, 2,000 boxes of antihistamine tablets were sold at a price of $20 per box, and during the current year, 2,500 boxes of tablets were sold at $25 a box. The most likely interpretation of these data is that the
A. supply and demand curves are shifting to the right. B. supply and demand curves are shifting to the left. C. the supply curve has shifted to the left, with no change in demand. D. the demand curve has shifted to the right, with no change in supply.
Free trade is better than protection for a small country
Indicate whether the statement is true or false
Children who play in playgrounds with rubber surfaces instead of gravel surfaces tend to
a. Play safer b. Play rougher c. Not change their play patterns d. Not like playing in the playground
Wage differentials between industries can be affected by productivity differences
Indicate whether the statement is true or false