Why is the indifference curve convex or bowed inward?
A. As you consume more of one good you are willing to give up less of the other good.
B. As you consume less of one good you are willing to give up less of the other good.
C. As you consume more of one good you are willing to give up more of the other good.
D. As you consume more of one good you are willing to give up half of the other good.
Answer: A
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A) a basic argument for free trade. B) the infant industry argument. C) dumping. D) a voluntary restraint agreement.
A law establishing a minimum legal price for a good or service (the minimum wage for example) is known as
a. an equilibrium price. b. a price floor. c. a price ceiling. d. a price wall.