Marginal utility has a negative slope. This is because of the
a. optimal purchase rule.
b. law of increasing costs.
c. law of diminishing marginal utility.
d. marginal rate of substitution.
c
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A rise in the rate of people's time preference in general tends to
A) increase interest rates. B) decrease interest rates. C) have no effect on interest rates. D) have no effect at all in the market for credit.
Which of the following countries provides the best example of a successful import substitution development strategy?
(a) Chile. (b) Taiwan. (c) Argentina. (d) Botswana.
Refer to Figure 7.7. A technological improvement is best represented by:
A. a movement from point a to point b.
B. a movement from point d to point a.
C. a movement from point c to point a.
D. a movement from point c to point d.
The total amount that the U.S. government spends to support a covered type of health care service under the Medicare system equals
A) the per-unit subsidy provided to producers of that service times the quantity of the service demanded by consumers at a below-equilibrium out-of-pocket price of the service. B) the per-unit subsidy provided to producers of that service times the equilibrium quantity of the service demanded at the market clearing price that would arise in the absence of Medicare. C) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service provided by producers at that out-of-pocket price. D) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service demanded by consumers at that out-of-pocket price.