If a person's compensated demand (or MWTP) curve is perfectly vertical, the good is borderline between regular inferior and Giffen for this consumer.
Answer the following statement true (T) or false (F)
False
Rationale: The statement is true for uncompensated demand curves. Compensated demand curves slope down so long as there is a substitution effect.
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According to Malthus, if the standard of living is above subsistence:
A) couples have more children. B) consumption is more than savings. C) couples have fewer children. D) savings is more than consumption.
Offering goods that are similar to competitors' products but more attractive in some ways is called:
A. product distinction. B. product differentiation. C. price-point pinning. D. deceptive advertising.
A rational decision maker takes an action if and only if
a. the marginal benefit of the action exceeds the marginal cost of the action. b. the marginal cost of the action exceeds the marginal benefit of the action. c. the marginal cost of the action is zero. d. the opportunity cost of the action is zero.
Which of the following statements is true of comparative advantage?
a. A nation can have a comparative advantage in the production of a good only if it has an absolute advantage in its production. b. When a nation increases production in its area of comparative advantage and trades with another nation, both nations benefit. c. When a nation produces a good at a higher opportunity cost than its trading partner, it is said to have a comparative advantage. d. A nation imports the good in which it has a comparative advantage.