The marginal rate of substitution is
A. the slope of the utility curve.
B. the slope of the contract curve.
C. the slope of the utility possibilities curve.
D. none of these answer options are correct.
A. the slope of the utility curve.
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
In a perfectly competitive market, technological advances bring ________ economic profits for producers and ________ lower prices for consumers
A) permanent; permanently B) permanent; temporarily C) temporary; permanently D) temporary; temporarily
What is a minimum wage and what are its effects if it is set above the equilibrium wage?
What will be an ideal response?
Which statement is false?
A. Looking at our trading pattern with Japan, one might reach the conclusion that we were an economic colony of Japan. B. Until the 1990s, the United States was the prime exporter of consumer electronics products, such as TVs, cameras and DVD players. C. In 1984 U.S. trade deficits first passed the $100 billion mark. D. The last year the U.S. ran a trade surplus was 1975.