The figure above shows one of Bob's indifference curves for CDs and books
a) Is the indifference curve steeper at point a or point b?
b) What is Bob's marginal rate of substitution at point a?
c) What is Bob's marginal rate of substitution at point b?
a) The indifference curve is steeper at point a.
b) The marginal rate of substitution at point a is 5 CDs per book, the slope of the line that just touches the indifference curve at this one point.
c) The marginal rate of substitution at point b is 1 1/2 CDs per book, the slope of the line that just touches the indifference curve at this one point.
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In the figure above, the richest 20 percent of households receive ________ of total income
A) 55 percent B) 45 percent C) 80 percent D) 60 percent
European banks began with which of the following?
a. Monarchs were the first bankers, lending out cash to help the poor learn a craft. b. Churches were the first bankers, lending out cash to help the poor learn a craft. c. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money. d. Fishermen were the first bankers, and the paper receipts they issued for the fish they stored in the hulls of their ships became valued as money.
Which of the following is most likely to increase the natural rate of unemployment?
a. An increase in the age of the working population b. A shift from service to manufacturing jobs c. An increase in the minimum wage rate d. A reduction in social security benefits e. A reduction in direct taxes
The supply curve of a natural resource like oil has a positive slope because
a. the supply becomes closer to exhaustion as demand rises. b. it becomes more costly to find and develop supplies as demand rises. c. rents rise as output increases. d. indirect taxes rise with output.