If James has a utility curve characterized by the function of U = 2X 3 Y 2 , what is his marginal rate of substitution between goods X and Y?
What will be an ideal response?
To find the MRSs, take the partial derivative of the function with respect to X and divide it by
the partial derivative with respect to Y, which yields (3/2) * (Y/X).
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A change in the federal funds rate ________ the supply of loanable funds, ________ the long-term real interest rate, and ________ investment
A) affects; affects; affects B) does not affect; does not affect; does not affect C) affects; does not affect; affects D) affects; affects; does not affect E) does not affect; affects; does not affect
Labor productivity increases when
A) the average number of hours people work goes up. B) the unemployment rate decreases. C) the average output produced per worker during a specified time period increases. D) the average output produced per worker during a specified time period decreases.
The size of an organization and the proportion of its workers in managerial roles is directly proportional
Indicate whether the statement is true or false
If you pay a constant percentage of your taxable income in taxes, the tax is
A) regressive. B) random. C) proportional. D) progressive.