The magnitude of the slope of an indifference curve is the marginal
A) rate of substitution.
B) rate of relative prices.
C) utility of substitution.
D) rate of utility of income.
A
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There is an exchange rate between
A. every pair of currencies. B. the world’s major currencies but not between the currencies of less-developed countries. C. currencies on a fixed exchange rate system but not for those on a floating rate system. D. the currencies of the European Union but not for the nations outside the European Union.
Think about each of the items in the list and explain how they affect incen-tives and might change the choices that people make:
What will be an ideal response?
Suppose you have two investments to choose from:
1, A one-year $20,000 zero coupon bond 2, A two-year $20,000 zero coupon bond What is the difference between the prices of these bonds if the interest rate rises from 4% to 5%? A) You would lose $167.39 more on the two year bond. B) You would lose $167.39 more on the one year bond. C) You would gain $350.54 more on the two year bond. D) You would lose $183.15 more on the one year bond.
Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?
A) 0 B) 90 C) 95 D) 100 E) none of the above