The above figure shows one of Sam's indifference curves between gasoline and coffee. Which of the following about a movement along Sam's indifference curve is CORRECT?
A) As he moves leftward along the curve, he likes the combinations of gasoline and coffee better and better.
B) As he moves rightward along the curve, he likes the combinations of gasoline and coffee better and better.
C) He likes all combinations of gasoline and coffee along the curve equally well.
D) None of the above is true.
C
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Consider a used car market in which half the cars are good and half are bad (lemons). A rational buyer in this market should
A) save up and buy a new car. B) offer to pay a price equal to the most she would pay for a good car. C) offer to pay a price equal to the most she would pay for a lemon. D) offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon.
With careful planning, we can usually get something that we like without having to give up something else that we like
a. True b. False Indicate whether the statement is true or false