The rate at which a consumer is WILLING to substitute one good for another is measured by
A. the slope of the tangent to the indifference curve.
B. the consumer's real income.
C. the slope of the budget line.
D. the corner solution on the Y axis.
Answer: A
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Apple's decision in 2002 to focus on developing a smartphone rather than a tablet computer exemplifies the
A) refusal of firms to invest in more than one project where unlimited resources are involved. B) trade-off that firms face due to limited resources. C) refusal of firms to invest in more than one project where limited resources are involved. D) trade-off that firms face due to unlimited resources.
Which of the following is a name for when a bank promises to lend funds to a borrower to pay off its commercial paper?
A) loan commitment B) standby letter of credit C) securitization D) loan sale
Alex's production is worth $60, Harry's is worth $40, Rob's is worth $40, and Julia's is worth $55 . They decide to combine their resources and produce together. For this to be a superadditive game, which of the following conditions must hold?
a. They should be able to produce more in groups of two than what they can produce together. b. Their combined production must exceed the total they can individually produce. c. Their resources must be perfect substitutes. d. Their resources must be perfect complements.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.