The indifference curve in the above diagram yields Juan 100 units of utility. If Juan's money income were to increase by 20 percent, the indifference curve would:

A) shift leftward.
B) shift rightward.
C) become steeper.
D) not be affected.

Ans: D) not be affected.

Economics

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Economists would describe the U.S. automobile industry as:

A. purely competitive. B. an oligopoly. C. monopolistically competitive. D. a pure monopoly.

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If a firm spends $400 to produce 20 units of output and spends $880 to produce 40 units, then between 20 and 40 units of output, the marginal cost of production is:

A. $20. B. $480. C. $24. D. $22.

Economics