Suppose a consumer consumes two goods, X and Y. The relative price of the two goods equals the
a. marginal rate of substitution.
b. rate at which the consumer will give up X to gain Y while maintaining the same level of utility.
c. slope of the budget constraint.
d. All of the above are correct.
c
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Capital gains are
A. the amount of income a taxpayer has after taxes are paid. B. total sales prices from assets. C. any profit you have from asset sales. D. total net income from all sources.
According to the BEA, in the second quarter of 2012 federal government spending on goods and services changed by -0.1 percent. This decrease could have been caused by a decrease in spending on
A) national defense. B) Social Security. C) interest payments on the national debt. D) unemployment benefits.
Alexander Hamilton used the infant-industry argument to support trade restrictions
Indicate whether the statement is true or false
Refer to the information provided in Figure 1.4 below to answer the question(s) that follow.
Figure 1.4Refer to Figure 1.4. Panel C shows a curve which has a slope that is
A. zero throughout. B. first positive and then negative. C. first negative and then positive. D. infinite throughout.