The magnitude of the slope of the budget line is the ratio of
A) a price to its quantity.
B) a quantity to its price.
C) two prices.
D) two marginal rates of substitution.
C
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Joey cuts grass during the summer. He rents a lawn mower from his dad. Which of the following statements best illustrates the difference between the short run and the long run for Joey?
A) Joey's friends say they will help him, but when he calls them, they say they have other things to do. B) When Joey acquires more customers, he responds by working more hours. Next year, he will buy a lawn mower and split the work with his brother. C) Some customers pay Joey immediately; others wait till the following week. D) Joey has had to turn away some customers because he is already too busy.
Refer to the above table. If opportunity costs are constant, then the United States and Mexico will produce goods in which they have a comparative advantage and trade at a rate of exchange of
A) 4 computers for 1 bicycle. B) 6 computers for 1 bicycle. C) 0.1 computer for 1 bicycle. D) 1 computer for 1 bicycle.
The nominal interest rate is 6 percent and the real interest rate is 2.5 percent. What is the inflation rate?
a. 2.4 percent. b. 3.5 percent. c. 8.5 percent. d. 15 percent.
A. How are marginal cost and marginal benefits related to total cost and total benefit curves? Illustrate your answer using carefully labeled diagrams. B. Illustrate the optimal choice of an activity using both a total cost and total benefit curve diagram and a MC and MB curve diagram.
What will be an ideal response?