The ratio of the prices of two products that a consumer would buy with a given fixed income is equivalent to the:
A. Marginal rate of substitution
B. Slope of the budget line
C. Income elasticity of demand for the two products
D. Price elasticity of demand for the two products
B. Slope of the budget line
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Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00?
A) Q = 0; profit = -$10.00 B) Q = 3; profit = -$7.50 C) Q = 1; profit = -$10. D) Price and profit cannot be determined from the information given.
Which of the following statements is true about monopolistically competitive firms?
A) Like perfectly competitive firms, monopolistically competitive firms are not able to raise prices without losing all of their customers because they face competition from firms selling similar products. B) Unlike perfectly competitive firms, monopolistically competitive face perfectly inelastic demand curves. C) Like perfectly competitive firms, monopolistically competitive firms maximize their profits by setting price equal to marginal cost. D) Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers.
Which of the following statements is FALSE regarding the definition of poverty?
A) A threshold income level is used to define poverty. B) Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index. C) Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita. D) Poverty cannot be defined in relative terms.
The Federal Reserve Act:
a. established a system which allowed for better regulation of financial intermediaries. b. allowed only nationally-chartered banks to become members of the Federal Reserve system. c. allowed the Fed District Banks to offer commercial loans to private businesses at reduced interest rates. d. required that all Fed District Bank directors be associated with the commercial banking industry. e. all of the above.