The consumer's income is $800.According to the above figure, what is the consumer's marginal rate of substitution in equilibrium?
A. 2.5
B. 1.5
C. 2
D. 0.8
E. unable to tell from information given
Answer: D
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Refer to Figure 5-1. The market equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
Nontoll roads can be either public goods or common resources, depending upon the degree of congestion
a. True b. False Indicate whether the statement is true or false
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade Silvia and Art can ________ the maximum consumption of computers by ________ units.
A. increase; 160 B. increase; 40 C. decrease; 80 D. decrease; 160
Which of the following is a limitation of the aggregate expenditure model?
a. It always assumes changes in price level create changes in autonomous consumption. b. It always assumes the economy is at equilibrium. c. It does not allow for changes in aggregate demand. d. It does not allow for the economy to self-correct.