Which of the following is not a characteristic of indifference curves?
A. They are negatively sloped.
B. They never intersect.
C. They are concave toward the origin.
D. Combinations of goods that include more of both goods are preferred, on a higher indifference curve.
Answer: C
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Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1 ) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better. (2 ) Because of long and uncertain time lags, activist monetary policy may be destabilizing rather than stabilizing. (3 ) There is sufficient flexibility in wages
and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP. (4 ) The "same-for-all-seasons" monetary policy is the way to proceed. (5 ) There is evidence that monetary policy in the mid-1970s caused a recession. A) (1), (2), and (3) B) (1), (4), and (5) C) (1 ) and (5) D) (4 ) and (5) E) (1), (3), and (4)
Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.
Answer the following statement true (T) or false (F)