As we move down and to the right along an indifference curve, the marginal rate of substitution:
A. increases.
B. decreases.
C. remains constant.
D. increases, then decreases.
B. decreases.
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A general formula for the multiplier is 1/(1-MPS)
Answer the following statement(s) true (T) or false (F)
The value of total output and total income in the simple circular flow model
A) include only intermediate goods. B) are equal to each other. C) are measures of the economy's level of savings. D) are related in the sense that national income is less than national product.
Which of the following statements is most accurate? a. If something is rare it is also has to be scarce
b. Scarcity can and will be eliminated in the short run. c. Scarcity can and will be eliminated in the long run. d. Scarcity cannot be eliminated in any time frame.
Danny Sever is a U.S. soldier. He produces a(n)
a. entitlement b. private good c. public good d. transfer payment e. merit good