Indifference curves tend to be bowed inward because of diminishing
a. marginal rates of substitution.
b. demand for the good as prices rise.
c. income.
d. Both a and b are correct.
a
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Refer to above figure. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?
What will be an ideal response?
The perfectly competitive firm has no influence over price because
A. its output is so insignificant relative to the market as a whole. B. antitrust laws constrain perfectly competitive firms. C. consumers establish the prices of products. D. it doesn’t know its demand curve.
A tax levied on the sellers of blueberries
a. increases sellers' costs, reduces profits, and shifts the supply curve up. b. increases sellers' costs, reduces profits, and shifts the supply curve down. c. decreases sellers' costs, increases profits, and shifts the supply curve up. d. decreases sellers' costs, increases profits, and shifts the supply curve down.
Which of the following statements characterizes NAFTA's economic arrangements among its member countries (Canada, Mexico, and the United States)?
a. There are no restrictions on the movement of labor from one country to another. b. There are no restrictions on the movement of capital from one country to another. c. All three countries have adopted the same identical tariff system. d. There is free trade among the three member countries.