The assumption of diminishing marginal rate of substitution means that
A) the budget line has a negative slope.
B) the budget line does not shift when people's preferences change.
C) indifference curves might have a positive slope.
D) indifference curves will be concave.
D
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If the change in y = -4 and the change in x = 2, there is
A) an independent relationship between y and x. B) a positive relationship between y and x. C) a negative relationship between y and x. D) no relationship between y and x. E) a relationship between x and y, but more information is needed to determine if it is a negative or positive relationshi
When a commercial bank borrows from a Federal Reserve Bank
A. the supply of money automatically increases. B. it indicates that the commercial bank is unsound financially. C. the commercial bank's lending ability is increased. D. the commercial bank's reserves are reduced.
Entrepreneurial ability is defined as the ability to ______.
a. invent economic goods that will change society b. inspire others to reach their professional potential c. negotiate the lowest prices for scarce resources d. develop new products or production processes
If we assume that government expenditure, investment, and net exports are not affected by income, the slope of the consumption function equals
A. The change in income divided by the change in consumption. B. APC. C. APS. D. The slope of the aggregate expenditure curve.