When indifference curves are bowed in toward the origin,
a. consumers are more inclined to trade away goods they have in abundance.
b. an increase in income will shift the indifference curve away from the origin.
c. a decrease in income will shift the indifference curve toward the origin.
d. Both b) and c) are correct.
a
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Under which of the following conditions will a profit-maximizing perfectly competitive firm shut down in the short run?
A) when it is making a normal profit B) whenever its marginal cost is less than its marginal revenue C) when the price is less than its minimum average variable cost D) whenever its total cost is greater than its total revenue E) when the price is less than its minimum average total cost
Those economists who believe that monetary policy is more powerful than fiscal policy argue that the
a. LM curve is vertical. b. IS curve is horizontal. c. interest rate elasticity of investment is large. d. interest rate elasticity of investment is small.