The property that implies that indifference curves are convex to the origin is:
A. completeness.
B. more is better.
C. diminishing marginal rate of substitution.
D. transitivity.
Answer: C
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The value of the marginal product of labor is given by:
A) the ratio of the marginal product of labor to the wage rate. B) the product of the marginal product of labor and the wage rate. C) the ratio of the marginal product of labor to the price of the final good produced. D) the product of the marginal product of labor and the price of the final good produced.
According to the law of diminishing returns, an additional unit of
A) capital produces more output than an additional unit of labor. B) labor decreases output. C) labor produces more output than the previous unit. D) labor produces less output than the previous unit.
An example of a unilateral transfer is
A) a gift to a relative who lives abroad. B) a check received in payment for an import. C) gold payments to foreign companies. D) SDR payments to world creditors.
An asset such as your house is really
a. M1 money b. M2 and fiat money c. M3 money d. near money e. not money