The marginal rate of substitution is
A) the change in the quantity of one good that just offsets a one unit change in the consumption of another such that the total satisfaction remains constant.
B) the additional satisfaction from consuming an additional unit of a good or service.
C) positively related to the level of income.
D) the set of goods and services that are available to the consumer given his income.
Answer: A
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Which of the following statements about the "separate but equal" provision of Plessy v. Ferguson is MOST accurate?
a. resulted in African-American schools that were comparable to white schools. b. resulted in African-American schools that were preferable to white schools in the South. c. did not seriously hamper the labor market experience of African-Americans. d. led to the creation of African-American schools that were systematically under funded.
Kornai argued that transition from socialism to capitalism requires the creation of democracy
a. True b. False
Which of the following is not an injection in the circular flow of income?
(a) Exports. (b) Imports. (c) Investment. (d) Transfer Payments.
Will equilibrium in a market always result in an outcome that is economically efficient? Explain
What will be an ideal response?