The marginal rate of substitution is
A. the set of goods and services that are available to the consumer given his income.
B. positively related to the level of income.
C. the change in the quantity of one good that just offsets a one unit change in the consumption of another such that the total satisfaction remains constant.
D. the additional satisfaction from consuming an additional unit of a good or service.
Answer: C
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A decrease in consumer confidence will cause a:
A. movement downward along the aggregate demand curve. B. shift in aggregate demand to the right. C. shift in aggregate demand to the left. D. movement upward along the aggregate demand curve.
Reducing inflation is a more important objective than economic growth" is an example of
a) Normative economics b) Positive economics c) Objective economics d) Reality economics
The authors of your text suggest which policy as a way of reducing urban traffic congestion?
A) A federal standard raising the minimum age for a driver's license to 21 years old B) Requiring motorists to pay a toll or fee based on the costs their driving imposes on others C) Increasing gasoline taxes D) Requiring people to drive in car pools
Pollution and other negative externalities arise because
a. there are no enforceable property rights to open-access resources b. legislators cannot agree on what to do about them c. they are the price consumers are willing to pay for production of goods and services d. private property rights to pollute are controlled by businesses e. science cannot decide how to control them