The marginal rate of substitution is the
A. change in the quantity of one good that changes the utility received by one unit.
B. rate at which the consumer can trade one good for the other in the marketplace.
C. rate at which the consumer will give up one good for an additional unit of the other good, such that total satisfaction is constant.
D. same thing as the marginal utility of a good.
Answer: C
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A shift in the production possibilities frontier curve will occur as a result of all of the following except
a. a change in the endowment of resources. b. a change in technology. c. a change in the production of one good relative to another good. d. a change in land, labor, or capital.
According to William Niskanen's model of bureaucracy, bureaus tend to be overfunded because
a. it is difficult for Congress to determine the shape of a bureau's supply curve. b. it is difficult for Congress to determine the shape of a bureau's demand curve. c. Congressional leaders believe that deficit spending leads to economic growth. d. Congressional leaders believe that government employees are underpaid.
The speed at which money circulates is called:
A. the multiplier B. the pace of money. C. acceleration. D. velocity.
In general, we would expect the marginal cost of pollution abatement to be
A) zero. B) decreasing. C) increasing. D) constant.