If MRS > MRT, then the consumer is better off than at equilibrium
Indicate whether the statement is true or false
False . MRS > MRT implies that the consumer values the next unit of "x" more than it costs to obtain it. That is, there is a gain from trade to be made. As more "x" is purchased, MRS falls and eventually MRS = MRT. At this point, all gains from trade have been made.
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The opportunity cost of a college education does not include any income that is foregone while enrolled in school, since this is not measured using monetary costs.
Answer the following statement true (T) or false (F)
Which of the following is a result of government price controls?
A) Some people win and some people lose. B) The deadweight loss from price ceilings is greater than the deadweight loss from price floors. C) Price controls increase economic efficiency. D) Price controls benefit poor consumers but harm producers and wealthy consumers.
If the discount rate is lowered further below the market interest rate, banks tend to
A) lend more to the Fed. B) lend less to the Fed. C) borrow more from the Fed. D) borrow less from the Fed.
Refer to the information provided in Figure 6.11 below to answer the question that follows.
Figure 6.11Refer to Figure 6.11. Gordon's opportunity cost of one hour of leisure is
A. $10. B. $24. C. $240. D. indeterminate from this information.