The rate at which a consumer is ABLE to substitute one good for another is determined by
A. the marginal rate of substitution.
B. the budget line
C. the consumer's income.
D. the indifference map.
Answer: B
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Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service ________ the equilibrium price and ________ the equilibrium quantity
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
When Sophie, a French citizen, purchases a Dell computer in Paris that was produced in Texas, the purchase is
A) neither an export nor an import for either country. B) a U.S. export and a French import. C) a U.S. import and a French export. D) both a U.S. and a French import.
The concept that market forces in the macroeconomy can remedy a recession is referred to as:
a. Keynesianism: the use of expansive fiscal and monetary policies to resolve a recession. b. The self-correcting mechanism c. The consumption function d. The paradox of thrift
Refer to the data provided in Table 11.3 below to answer the following question(s). Table 11.3ProjectTotal InvestmentExpected Rate of Return(dollars) (percentage)New computer for sales staff $250,00011Remodel for distribution center$200,000 9On-site day care center $100,000 5Employee fitness center$50,000 4Refer to Table 11.3. If the interest rate is 10%, Blackstar Drone Manufacturing should
A. fund all of the projects except for the purchase of new computers for its sales staff. B. fund only the purchase of new computers for its sales staff. C. fund all of the projects. D. not fund any of the projects.