At any point on an indifference curve, the slope of the curve measures the consumer's
a. elasticity of demand.
b. income.
c. willingness to trade one good for the other.
d. perception of the two goods as substitutes or complements.
Ans: c. willingness to trade one good for the other.
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If marginal revenue is less than marginal cost, the firm should
A) raise price. B) raise marginal revenue. C) increase its rate of output. D) decrease its rate of output.
Which of the following statements about the Fed is not true?
a. It serves as the bankers' bank for member banks. b. It can, and on occasion does, control interest rates. c. It uses open market operations to control the economy's money supply. d. It changes the legal reserve requirement less frequently than it changes the discount rate. e. It changes the legal reserve requirement more frequently than it changes the discount rate.
Which of the following is an example of financial intermediation?
a. John buys shares of stock issued by a fast food company. b. A foreign government buys bonds issued by the U.S. Treasury. c. Susan makes a deposit at a bank and the bank uses this money to make an auto loan to Ferguson. d. None of the above is correct.
During the 1980s and 1990s, the fastest growing federal expenditures was the ____________________.
What will be an ideal response?