The slope of the budget line represents:
A. the budget rate of substitution.
B. the opportunity rate of substitution.
C. the market rate of substitution.
D. the marginal rate of substitution.
Answer: C
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Using the above figure, CBL is the cost of breaking the law. What is the equilibrium price and quantity if beer is legal?
A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
Deadweight loss:
A. occurs when the market price is set above the equilibrium price. B. occurs when the market price is set below the equilibrium price. C. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity. D. All of these are true.
The annual percentage increase in the purchasing power of a financial asset is called the:
A. inflation rate. B. real rate of return. C. nominal interest rate. D. real interest rate.
Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs
Indicate whether the statement is true or false