Given that income is $750 and PX = $32 and PY = $8, what is the market rate of substitution between goods X and Y?
A. -3
B. -4
C. -0.75
D. -25
Answer: B
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Which of the following is NOT a step involved in optimization in levels?
A) Calculating the total net benefit of each alternative B) Choosing the alternative with the highest net benefit C) Calculating the marginal consequences of moving between alternatives D) Converting all costs and benefits into a common value of measurement
What is it called when the value of a business is determined based on the value of tangible and intangible assets, net of liabilities?
a. non-liability-based valuation method b. market-based approach c. asset-based valuation method d. income-based approach e. none of these
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one snowboard is painting:
A. 1/8 of a kite. B. 1.5 kites. C. 8 kites. D. 12 kites.
Suppose a new EU member begins substituting its imports from non-EU members to other EU members. This is an example of
A) trade diversion. B) trade deflection. C) free trade. D) trade detection.