One consumption bundle is revealed preferred to a second bundle if:
A. a consumer voluntarily chooses it over the second bundle.
B. surveys reveal that consumers are more likely to choose it than the second bundle.
C. it is cheaper than the second bundle.
D. it lies on a higher indifference curve than the second bundle.
A. a consumer voluntarily chooses it over the second bundle.
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The production possibilities frontier shows:
a. possible combinations of two types of goods that can be produced when all available resources are fully and efficiently employed. b. possible combinations of two types of resources that can be used to produce a given combination of two goods. c. possible quantity of a good that will be consumed at various possible prices. d. possible quantity of a good that will be supplied at various possible prices.
Why is a depreciation or devaluation of the nation's currency unable to eliminate a trade balance deficit when the country's demand for imports and the foreign demand for the country's exports are both highly inelastic?
What will be an ideal response?