In the above figure, what is the magnitude of the marginal rate of substitution (MRS) at point a?
A) 1/2
B) the rate at which the consumer will give up magazines to purchase more CDs while preferring the new combination to the old
C) 2
D) The question cannot be answered without more information.
A
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In the above figure, what is the wage rate for the perfectly competitive market?
A) W1 B) W2 C) W3 D) W4
If a pharmaceutical company discovers a new drug and successfully patents it, patent law gives the firm
a. partial ownership of the right to sell the drug for a limited number of years. b. partial ownership of the right to sell the drug for an unlimited number of years. c. sole ownership of the right to sell the drug for a limited number of years. d. sole ownership of the right to sell the drug for an unlimited number of years.
The liquidity trap is the _____ section of the demand curve for money.
A. flat section of the speculative B. flat section of the precautionary C. vertical section of the speculative D. vertical section of the precautionary
Chapter 10 presents the Big Mac Index. While it is a clever illustration, the Big Mac Index is not really a good example to use to explain the theory of purchasing power parity. Why not?
What will be an ideal response?