An indifference curve is negatively-sloped because:
A) utility is a subjective concept.
B) as the consumer obtains additional units of one good, the consumer is willing to sacrifice increasing amounts of the other good.
C) in order to remain at the same level of utility, if an individual gets more of one good, he must sacrifice some of the other good.
D) marginal utility is constant along an indifference curve, and increases in the consumption of one good cause the price of that good to fall.
C
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In the above table, the average propensity to save when disposable income is $5,000 is
A) -0.1. B) 0.1. C) 0.0. D) 0.2.
Factor markets are different from product markets in an important way because
a. equilibrium is the exception, and not the rule, in factor markets. b. the demand for a factor of production is a derived demand. c. the demand for a factor of production is likely to be upward sloping, in violation of the law of demand. d. All of the above are correct.