Explain the difference between the marginal rate of substitution and the marginal rate of transformation
What will be an ideal response?
The marginal rate of substitution is a consumer's willingness to trade one good for another based on utility. The marginal rate of transformation is the consumer's ability to trade one good for another based on prices.
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In an open economy, this country will ________ million bushels of corn. 
A. import 600 B. export 300 C. import 150 D. export 600
The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase. B) The demand for ferry service would decrease. C) There would be an upward movement along the demand curve for transits through the Chunnel. D) There would be a downward movement along the demand curve for transits through the Chunnel.
Dummy variables can be used to address the problem of seasonality in regression models.
Answer the following statement true (T) or false (F)
When total utility falls, marginal utility is _____.
a. ?at its maximum b. ?positive c. ?negative d. ?infinite e. ?zero