Which of the following is NOT true about indifference curves?
A) Indifference curves slope downward.
B) Indifference curves show equally preferred combinations of two goods.
C) Indifference curves are not straight lines because the marginal rate of substitution falls.
D) Indifference curves shift when prices change.
Answer: D
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The Fed has decreased the money supply. The formula for calculating the resulting change in demand deposits is
a. (1/RRR) minus the change in reserves b. (1/RRR) multiplied by the change in reserves c. the change in reserves divided by [1 - (1/RRR)] d. RRR minus the change in reserves e. [1 - (1/RRR)] multiplied by the change in reserves
In the context of labor markets, shirking refers to:
A. the nonmonetary disadvantages of certain jobs. B. the neglecting or evading of work. C. the elimination of monitoring costs. D. any scheme where pay is directly related to worker output.