The absolute value of the slope of an indifference curve is called the:
A. marginal rate of transformation.
B. transitivity slope.
C. indifference rate of preference.
D. marginal rate of substitution.
Answer: D
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Modern economists are increasingly using microeconomic analysis in macroeconomics because
A) microeconomic theory is more scientific. B) aggregate outcomes stem from decisions made by individuals, business firms and government. C) macroeconomic subjects such as inflation affect all individuals. D) macroeconomics is older and more outdated.
The marginal revenue curve of a monopolistically competitive firm is
A) downward sloping and above the demand curve. B) downward sloping and below the demand curve. C) identical to the demand curve as there are many small firms in the market. D) perfectly elastic.
In the late nineteenth century, technological improvements and cheaper transportation in the United States led to
a. a decrease in minimum efficient scale in many industries b. an increase in minimum efficient scale in many industries c. an overall reduction in productive efficiency d. a narrowing of markets e. price increases in many industries
The money market is definitely in equilibrium in which of the following cases?
a) when velocity is constant b) when the quantity of money demanded equals the quantity of money supplied c) when the present value is equal to the interest rate d) when the present value is greater than the interest rate e) when the interest rate is equal to the price of bonds