According to the following figure, at point A,
A. the ratio of the price of X to the price of Y is greater than it is at point B.
B. the marginal rate of substitution of X for Y is greater than it is at point B.
C. the consumer's utility is less than it is at point B.
D. both a and c
E. all of the above
Answer: E
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Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. Suppose it takes policy makers from time t2 to time t4 to take an action to stimulate the economy. This is an example of
A. implementation lag. B. cyclical lag. C. response lag. D. recognition lag.
Explain the difference between a positive production externality and a positive consumption externality
What will be an ideal response?
Which of the following is a source of market risk?
a. Holding stocks in many companies carries the risk of a reduced average return. b. Real GDP varies over time and sales and profits move with real GDP. c. When a paper producer has declining sales, it is likely that so will other paper producers. d. If stockholders become aggravated with the way a CEO runs a company, the price of that company's stock might fall in the stock market.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. Which of the following statements is correct?
A. Leo has both the absolute advantage and the comparative advantage in fudge. B. Ana has the comparative advantage in toffee, but Leo has the absolute advantage in toffee. C. Ana has the comparative advantage in fudge, but Leo has the absolute advantage in fudge. D. Ana has both an absolute advantage and the comparative advantage in fudge.