The slope of the budget line represents the rate at which the consumer is willing to trade one good for another at any given bundle
Indicate whether the statement is true or false
False. This describes the slope of the indifference curve. The slope of the budget line represents the rate at which the consumer must trade one good for another at any given bundle.
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The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
Aggregation is important in macroeconomics because
a. it is a basic tool of reasoning b. we need a model with as much information as possible c. it allows us to comprehend the entire economy in all its detail d. it allows us to keep different markets separate in our minds e. we need to consider the entire economy at once with a model as simple as possible
A lawyer who drives a beat-up car and wears frumpy clothes may have a hard time getting clients. Potential clients may conclude from his appearance that he is poor, and if he is poor, he probably is not very good. If this is true for a lawyer, dressing in expensive and stylish clothing is a way of:
A. signaling quality. B. changing a nonrival good into a rival good. C. screening. D. internalizing externalities.
For the monopoly shown in the figure above, the economic profit is
A) $0. B) $10. C) $40. D) $100.