The rate at which a consumer will exchange one good for another is called:
A. marginal utility.
B. the marginal rate of transformation.
C. the rate of substitutability.
D. the marginal rate of substitution.
D. the marginal rate of substitution.
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Assuming that the government can act immediately before the multiplier takes effect, then to offset a reduction in investment by $1 billion, government purchases must be:
A. decreased by $1 billion. B. increased by $1 billion. C. increased by $2 billion. D. increased by $0.5 billion.
According to this Application, in the 1990s EU countries had ________ in the production of all products compared to Latvia
A) an absolute advantage and a comparative advantage B) neither an absolute advantage nor a comparative advantage C) an absolute advantage but not a comparative advantage D) a comparative advantage but not an absolute advantage
A survey recently indicated that being happy at work tends to make workers more productive. What can be a possible error of this conclusion?
What will be an ideal response?
When the price of a normal good decreases, people buy ________ of the good due to ________
A) more; the substitution effect only B) more; the substitution and income effects C) less; the substitution effect only D) less; the income effect only