The marginal rate of substitution measures the slope of the:
a. total utility curve.
b. demand curve.
c. budget line.
d. indifference curve.
d
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Which of the following is NOT correct about the effects of a tariff on an imported product?
A) Tariffs benefit domestic producers by raising price and domestic output. B) Tariffs increase government revenue. C) Tariffs mean higher prices and less consumption for consumers of the product. D) Tariffs increase the efficiency of how resources are allocated.
A demand curve reflects each of the following except the
a. willingness to pay of all buyers in the market. b. value each buyer in the market places on the good. c. highest price buyers are willing to pay for each quantity. d. ability of buyers to obtain the quantity they desire.
The 80/20 ratio is found by dividing the
A. number of households making less than 80 percent of the poverty line by the number of households making more than 20 times the poverty line. B. average income of those below the 80th percentile by the average income of those in the top 20 percent. C. average income of the top 80 percent of income earners by the average income of the top 20 percent of income earners. D. income at the 80th percentile by the income at the 20th percentile.
If demand is perfectly inelastic, the absolute value of the price elasticity of demand is
A) zero. B) less than one. C) more than one. D) equal to the absolute value of the slope of the demand curve.