The Truman Administration Responded in 1950 to the Onset of Fighting

question 24

Multiple Choice

The Truman administration responded in 1950 to the onset of fighting in Korea by

• A) telling South Korea to stand down.
• B) calling on the United Nations to intervene.
• C) warning China not to intervene.
• D) declaring war on North Korea.
• E) threatening the use of atomic weapons.

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Definitions:

Consumption

The act of using goods and services by households or individuals, leading to the depletion of wealth.

Equal Marginal Principle

Principle that utility is maximized when the consumer has equalized the marginal utility per dollar of expenditure across all goods.

Hicksian Substitution Effect

Alternative to the Slutsky equation for decomposing price changes without recourse to indifference curves.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent.