The slope of the budget line is the amount of one commodity that a consumer must give up in order to obtain an additional unit of the other commodity
a. True
b. False
Indicate whether the statement is true or false
True
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The parameter A re-scales the production function 
-- allowing us to transform a decreasing returns to scale production function to an increasing returns to scale production function.
Answer the following statement true (T) or false (F)
Explain the relationship between the real interest rate and the demand for loanable funds. Compare that relationship to the relationship between expected profit and the demand for loanable funds
What will be an ideal response?
Which of the following is true regarding scarcity?
a. Scarcity could be eliminated if all economies of the world would work together to solve world hunger. b. Scarcity could be eliminated if we had full employment. c. It is impossible to eliminate scarcity, given limited resources and unlimited wants. d. Scarcity could be eliminated if all economies of the world would adopt communism. e. Scarcity could be eliminated if all economies of the world would adopt a free market system.
If Japan imposes a tariff on shoes from Argentina, then
a. the price of Argentinean shoes sold in Japan will fall b. the quantity of Argentinean shoes sold in Japan will rise c. Japanese shoe producers will benefit d. Japanese consumers will benefit from lower prices for Japanese shoes e. Japanese consumers will benefit from lower prices for Argentinean shoes