Indifference curves are convex to the origin because of:
A) transitivity of consumer preferences.
B) the assumption of a diminishing marginal rate of substitution.
C) the assumption that more is preferred to less.
D) the assumption of completeness.
E) none of the above
B
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An example of technological development is to increase output through
a. raising pay. b. working longer hours. c. hiring more workers. d. using better machines.
Patty runs a small organic peanut butter company with five employees and local sales of $100,000 per year. She estimates that the shape of her total variable cost curve largely reflects her costs of
a. peanuts b. electricity c. packaging d. labor e. marketing
The gains from specialization and trade are based on absolute advantage
a. True b. False Indicate whether the statement is true or false
All of the following are barriers to international investment EXCEPT
A) adverse selection. B) incomplete information. C) moral hazard. D) symmetric information.