_____ have the ability to recognize constraints and may choose to incur the costs of altering them.
a. Economists
b. Rational people
c. Entrepreneurs
d. Research groups
QUESTION 2An indifference curve shows _____.
a. the relationship between total and marginal utility
b. the relationship between the quantity of a good and the maximum attainable satisfaction
c. the various combinations of two goods that give a consumer the same amount of satisfaction
d. the relationship between the price and quantity of a good that a consumer is able to purchase
e. that the quantities of a good that give a consumer maximum satisfaction are directly related to price
QUESTION 3Which of the following would be considered a variable input in the short run?
a. The size of a firm's plant.
b. The acreage of an apple farmer's orchard.
c. The production capacity of a machine.
d. None of the above.
QUESTION 4Which of the following factors leads to a drastic rise in the price of assets?
a. Increased supply of assets
b. Increase in the market rate of interest
c. Reduced demand for money
d. Increased liquidity in the economy
e. Contractionary monetary and fiscal policies being undertaken by the government
QUESTION 5Since people's incomes are limited and their abilities to borrow differ they face _____ constraints.
a. psychological
b. financial
c. societal
d. contractual
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