Macroeconomics

Consider an indifference curve drawn for movies and pizzas. Which of t

Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false? A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed […]

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Date: September 10th, 2020

An index, based on a telephone survey of 500 households conducted by t

An index, based on a telephone survey of 500 households conducted by the University of Michigan, that measures households’ attitudes regarding expected business conditions, personal financial conditions, an consumer confidence about purchasing furniture and major household appliances is called the: A) Consumer Sentiment Index. B) Consumer Confidence Index. C) Consumer Satisfaction Index. D) Consumer Consumption […]

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Date: September 10th, 2020

In which of the following situations would consideration of the minimu

In which of the following situations would consideration of the minimum efficient scale of operation suggest that the market should be served by a single firm to minimize production costs? A) When the LRAC curve slopes downward over the relevant range of output. B) When the LRAC curve hits its minimum point at a relatively […]

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Date: September 10th, 2020

Which of the following is not a basic assumption underlying the theory

Which of the following is not a basic assumption underlying the theory of consumer behavior? A) Consumers prefer more to less. B) Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers. C) Goods are continuously divisible, that is, consumers can always purchase one more […]

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Date: September 10th, 2020

Assume the LRAC curve for a particular industry hits its minimum point

Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large. In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of […]

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Date: September 10th, 2020