"The marginal rate of substitution of the good measured along the x-axis increases as a consumer moves downward along an indifference curve." Is the previous statement correct or not?
What will be an ideal response?
The statement is incorrect because the marginal rate of substitution decreases as a consumer moves downward along an indifference curve.
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What is arbitrage? Explain why arbitrage drives the contract price of futures to the price of the underlying asset on the expiration date, for prices above and below the asset price
What will be an ideal response?
Refer to above Table 2-1. What is the level of Personal Saving?
A) 100 B) 90 C) 80 D) 130
As an economy adjusts to an increase in the saving rate, we would expect output per worker
A) to increase at a constant rate and continue increasing at that rate in the steady state. B) to increase at a permanently higher rate. C) to decrease at a permanently higher rate. D) to return to its original level. E) none of the above
If we were on curve K, the upper two quintiles received about _____% of income.
A. 25
B. 35
C. 45
D. 55