Frannie spends her income on rice and beans. At her optimum, Frannie's
a. utility from consuming rice is equal to her utility from consuming beams.
b. marginal utility of rice is equal to her marginal utility of beans.
c. marginal utility per dollar spent on rice equals her marginal utility per dollar spent on beans.
d. marginal rate of substitution is equal to 1.
c
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People who reject all theories because they prefer to rely on experience
A) actually rely on unrecognized theories. B) don't know any theories and are trying to cover up their ignorance. C) tend to accomplish more but also to make more mistakes. D) tend to make fewer mistakes but also to accomplish less. E) value science more than theory.
The United States has a comparative advantage in producing cotton if the U.S. price of cotton before international trade is ________ the world price
A) less than B) equal to C) greater than D) not comparable to
For a given interest rate, r, which of the following expressions is smallest?
a. 1 + r. b. (1 + r/2)2. c. (1 + r/12)12 d. (1 + r/365)365.
A bowed production possibilities curve is consistent with
A) a decreasing opportunity cost. B) a technologically inefficient society. C) the overutilization of productive resources. D) highly specialized resources.