Refer to Scenario 16.3. What is Sam's marginal rate of substitution of tee shirts for candy at the current distribution?
A) 2.
B) 7/5.
C) 5/7.
D) It is impossible to determine without the prices of each commodity.
B
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Which of the following is correct when a price is set below a market's equilibrium price?
a. quantity demanded exceeds quantity supplied at the set price b. quantity demanded is less than quantity supplied at the set price c. quantity demanded is equal to quantity supplied at the set price d. at the set price there is a surplus e. the market price is less than the ceiling price
Scarcity is determined by the existence of bad alternatives.
a. true b. false
Refer to the accompanying figure.
An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ creating ________ gap.
A. A; an expansionary B. D; an expansionary C. D; a recessionary D. A; a recessionary
When the isocost line is tangent to the isoquant, then
A) MPL = MPK. B) the firm is producing that level of output at minimum cost. C) the firm has achieved the right economies of scale. D) All of the above.