As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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Social Security retirement benefits are increased automatically each year at the rate of inflation
Indicate whether the statement is true or false
When the price of a good in a market is above equilibrium: a. the quantity supplied exceeds the quantity demanded. b. a surplus is observed
c. the price will fall in the near future. d. all of the above.
At $30 each, Jack will buy 1 Blu-ray and at $25, he will purchase 2 . If the price is $25, Jack's consumer surplus is: a. $5
b. $10. c. $15. d. $20.
The price of A falls by 2 percent, and the quantity demanded of A increases by 2 percent. Meanwhile, the quantity demanded of B increases by 2 percent too. We would conclude that
A. demand for A is elastic, and A and B are substitutes. B. demand for A is unit-elastic, and A and B are complements. C. demand for A is inelastic, and A and B are unrelated. D. demand for A is elastic, and A and B are complements.