A consumer's preferences for right shoes and left shoes can be represented by indifference curves that are
a. bowed out from the origin
b. bowed in toward the origin
c. straight lines
d. right angles
d
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Total utility is maximized when _____
a. the marginal utility is maximized b. the marginal utility is the same for all goods consumed c. the marginal utility per dollar expenditure is maximized d. the marginal utility per dollar expenditure is the same for all goods consumed e. any change in purchases from good A to good B reduces marginal satisfaction
A lender need not be penalized by inflation if the
A. long-term rate of inflation is less than the short-term rate of inflation. B. short-term rate of inflation is less than the long-term rate of inflation. C. lender correctly anticipates inflation and increases the nominal interest rate accordingly. D. inflation is unanticipated by both borrower and lender.