Which of the following is true about the marginal rate of substitution?
A. the change in the quantity of one good that just offsets a one unit change in the consumption of another such that the total satisfaction remains constant.
B. positively related to the level of income.
C. the additional satisfaction from consuming an additional unit of a good or service.
D. the set of goods and services that are available to the consumer given his income.
Answer: A
You might also like to view...
Use the following graph to answer the next question.
In the figure, AD1 and AS1 represent the original aggregate supply and demand curves. If Q1 is full-employment output, then the long-run aggregate supply curve is located at output level ________.
A. Q2 B. Q1 C. Q3 D. None of these choices are correct.
An "equal opportunity" admissions process to college would widen educational disparities between whites and blacks
Indicate whether the statement is true or false
Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the production of corn. Swain produced 150,000 bushels of corn in 2012, receiving $5 per bushel. Assuming this producer had production expenses of $300,000,
and assuming the Consumer Price Index (CPI) for 2012 was 2.50, what was his real farm income for 2012? A) $450,000 B) $200,000 C) $750,000 D) $180,000
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30