Convexity of indifference curves imply that consumers are willing to
A) give up more "y" to get an extra "x" the more "x" they have.
B) give up more "y" to get an extra "x" the less "x" they have.
C) settle for less of both "x" and "y".
D) acquire more "x" only if they do not have to give up any "y".
B
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Which of the following is not correct?
a. A negative income tax only applies to working people, so it encourages people to get full-time work. b. Supporters advocate the use of the Earned Income Tax Credit as a way to help the working poor. c. A negative income tax subsidizes the incomes of poor people. d. An advantage of a negative income tax is that it is not based on the number of children, so it does not provide incentives for unmarried women to have children.
Which of the following would NOT be considered a fixed cost of production?
A) wages paid to labor B) the opportunity cost of capital C) interest payments on a loan D) insurance payments on plant and equipment