When two goods are perfect substitutes, the
a. indifference curve is a downward-sloping straight line.
b. marginal rate of substitution is constant.
c. indifference curve is a vertical straight line.
d. Both a and b are correct.
d
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In a world without transactions costs, how will a change in property rights affect
(i) economic efficiency, (ii) the distribution of income, and (iii) the allocation of resources? Explain, using the Weak and Strong Coase Theorems.
The difference between explicit costs and implicit costs
A) is that explicit costs are opportunity costs while implicit costs are not. B) is that implicit costs are opportunity costs while explicit costs are not. C) is that explicit costs are short-run costs and implicit costs are long-run costs. D) is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Mother Lode to another mine is:
A. 3 tons per day. B. 4 tons per day. C. 1 ton per day. D. 2 tons per day.
Refer to the below graph. The relationship between the average tax rate and the tax base in a proportional tax would be represented by:
A. Curve A
B. Curve B
C. Curve C
D. None of the graphs