For an individual who consumes only two goods, x and y, the opportunity cost of consuming one more unit of x in terms of how much y must be given up is reflected by:
a. the individual's marginal rate of substitution.
b. the market prices of x and y.
c. the slope of the individual's indifference curve.
d. none of the above.
b
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Which of the following is an example of moral hazard?
A) I hire you to work in my garden for a fixed fee, and you work hard all day. B) I hire you to work at an hourly rate and you work as slowly as possible. C) You apply for the job only because I pay a fixed wage per day, no matter how much or little you do. D) You agree to be paid by the weed to work in my garden, and then don't work hard.
The problem of scarcity
a. arises only in poor countries. b. exists because the price of goods is too high. c. exists because of limited resources. d. will eventually be solved by better planning.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Real Domestic GDP b. GDP price index c. Real risk-free interest rate d. Quantity of currency per time period e. Open market operations
Which of the following statements is true under the Gauss-Markov assumptions?
A. Among a certain class of estimators, OLS estimators are best linear unbiased, but are asymptotically inefficient. B. Among a certain class of estimators, OLS estimators are biased but asymptotically efficient. C. Among a certain class of estimators, OLS estimators are best linear unbiased and asymptotically efficient. D. The LM test is independent of the Gauss-Markov assumptions.