The ratio of the prices of two goods measures
A. the rate at which a consumer is willing to substitute one good for another in the market.
B. the marginal rate of substitution of X for Y.
C. the rate at which a consumer is able to substitute one good for another in the market.
D. both a and c
E. both b and c
Answer: C
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Contrary to what the Phillips curve would have predicted, the U.S. economy in the 1970s experienced simultaneous increases in inflation and unemployment
a. True b. False Indicate whether the statement is true or false
Which of the following countries has the most equal income distribution?
a. Sweden b. Japan c. United States d. Netherlands
Exhibit 19-4 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 4,000 Checkable deposits$20,000 Excess reserves16,000 Loans 0 Total$20,000 Total$20,000 The required reserve ratio in Exhibit 19-4 is:
A. 5 percent. B. 10 percent. C. 15 percent. D. 20 percent.
Social Security payments automatically increase when the Consumer Price Index (CPI) goes up because of the:
A. age of the recipient. B. years receiving social security. C. cost-of-living adjustments. D. individual being married or unmarried.