Two goods are perfect complements if the marginal rate of substitution between them is constant
a. True
b. False
Indicate whether the statement is true or false
False
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If a nation remains poor over time, it could be that:
a. c and e. b. d and e. c. the population growth rate is at least as much as the national GDP growth rate. d. the per capita real GDP growth rate is larger than the population growth rate. e. the national real GDP growth rate is lower than the population growth rate.
Government expenditures increase. What happens to the price level and output? Explain how the change in the price level and output effect the inflation rate and the unemployment rate
Which of the following is a merit good?
A. Health care. B. Electricity. C. Automobiles. D. Local telephone service.
If Brazil has a comparative advantage relative to Cuba in the production of sugar cane, then
A) the average cost of production for sugar cane is lower in Brazil than in Cuba. B) the implicit costs of production for sugar cane are lower in Brazil than in Cuba. C) the opportunity cost of production for sugar cane is lower in Brazil than in Cuba. D) the explicit cost of production for sugar cane is lower in Brazil than in Cuba.