The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.
B) the price of good on the horizontal axis divided by the price of the good on the vertical axis.
C) the marginal rate of substitution between the two goods in question.
D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
B
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A decrease in the price of inputs will cause the supply curve for a product to shift to the right
Indicate whether the statement is true or false
Robert Fogel (1964) demonstrates that
(a) the social saving of the railroad was large; much of the country (over 25%) could not have been settled and cultivated without the railroad. (b) the canal and river systems of transportation could very nearly have produced the same results as the railroad in terms of land cultivated. (c) the railroad was responsible for a great "take-off" in terms of economic growth in the 19th century. (d) the railroad gave a huge boost to the iron industry because for a time it consumed well over 50% of all iron produced.
In the long-run...
What will be an ideal response?
The development of money as a medium of exchange has facilitated the expansion of trade because
A. holding money increases people's wealth. B. no other mediums of exchange are available. C. holding money increases people's income. D. money eliminates the "double coincidence of wants" problem.