In a Preference Map,consumption Combinations on Higher Indifference Curves

question 143

Multiple Choice

In a preference map,consumption combinations on higher indifference curves

• A) always cost more than any combination on a lower indifference curve.
• B) always are preferred to combinations on lower indifference curves.
• C) always cost less than any combination on a lower indifference curve.
• D) always are less preferred than combinations on lower indifference curves.
• E) are sometimes more preferred, sometimes less preferred, and sometimes equally preferred to any combination on a lower indifference curve.

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Definitions:

Capital Flight

The rapid movement of large sums of money out of a country, typically to escape economic instability or unfavorable investment conditions.

Domestic Investment

The total capital expenditure within a country's borders on physical assets such as buildings, machinery, and equipment, contributing to the national economy.

Net Exports

The value of a country's total exports minus the value of its total imports. It is a key component in calculating a nation's GDP.

Capital Flight

The rapid movement of large sums of money or assets out of a country due to economic or political instability, leading to a decrease in domestic investment.