You view tea and scones as perfect complements, and you prefer to consumer one cup of tea with one scone. Also, your indifference curves are plotted with tea on the vertical axis
If you presently have two cups of tea and one scone, what this the marginal rate of substitution (MRS) at this point? A) +1
B) -1
C) Zero
D) Infinity
D
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A monopoly is characterized by all of the following except
A) the firm has market power. B) there are no close substitutes to the firm's product. C) there are only a few sellers, each selling a unique product. D) entry barriers are high.
The imperfect capital market justification for infant industry promotion
A) assumes that new industries will tend to have low profits. B) assumes that infant industries will soon mature. C) assumes that infant industries will be in products of comparative advantage. D) assumes that banks can allocate resources efficiently. E) assumes that developing country will reward the donor country.
Public libraries, art galleries, and the National Institutes of Health are examples of
a. merit goods b. public goods c. social goods d. private goods e. exclusive goods
Italy has a comparative advantage in which product?
