Can consumption efficiency be achieved even if the efficient product mix is not achieved?
What will be an ideal response?
Efficiency in consumption implies that all consumers have the same MRS. This can be achieved with any product mix. Thus, consumers can be as well off as possible for any given product mix. If the product mix is inefficient, consumers can still make the best of it even though a different product mix could make them even better off.
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In 1960, the most developed economies had _______ the GDP per capita of the poorest economies.
a. 2.4 times b. 4.2 times c. 3.4 times d. 5.4 times
What is the present value of $20,000 that will be paid to you in four years if the interest rate is 10%? Work it out to the nearest cent.
What will be an ideal response?
The ________ supply curve(s) of a perfectly competitive firm is the portion of its marginal cost curve that lies above its average variable cost curve.
A. short-run B. short-run and long-run C. long-run D. A perfectly competitive firm faces no supply curve.
Refer to the diagram. Initially assume that the investment demand curve is ID 1 . Which of the following effects of financing a large public debt might shift the investment demand curve from ID 1 to ID 2 , wholly offsetting any crowding-out effect?
A. An improvement in profit expectations by businesses.
B. A decrease in saving.
C. A decline in the interest rate.
D. An increase in the marginal propensity to consume.