The marginal rate of substitution is the
A) rate at which the consumer can exchange one good for the other.
B) change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant.
C) change in the quantity of one good that changes the utility received by one unit.
D) same thing as the marginal utility of a good.
Answer: B
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The buyers of a good will want to purchase it as long as their willingness to pay for the good is:
A) equal to zero. B) greater than zero. C) less than the price. D) greater than or equal to the price.
Refer to Figure 4-2. What area represents the increase in producer surplus when the market price rises from P1 to P2?
A) B + D B) A + B C) A + C + E D) C + E
To differentiate its product, a monopolistic competitive firm will engage in all of the following advertising practices EXCEPT
A) direct marketing. B) mass marketing. C) interactive marketing. D) indirect marketing.
In considering the financial history of the transcontinental railroads, the text argues that: a. there was surprisingly little corruption given the corruption in other walks of life at the time. b. there was surprisingly little corruption, mostly involving the buying off of federal regulators when rate controls became unreasonable. c. there was a great deal of corruption, mostly in the form of
high fees chargedimmigrants for what was really free federal land. d. there was a great deal of corruption, mostly because construction companies were run by insiders.