As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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According to the textbook, price discrimination is
A) illegal. B) morally justified. C) net-revenue maximizing. D) unfair to the different groups of customers.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The GDP Price Index rises, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency rises. c. The GDP Price Index falls, and nominal value of the domestic currency falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.
The slope of a graph with "income" on the horizontal axis and "saving" on the horizontal axis is +0.2. This means that if: (BOTH SAY HORIZONTAL)
A. Income is $100, then saving is $20 B. Income is 0.20, then saving is zero C. Income increases by $100, then saving will rise by $20 D. Saving rises by $100, then income will rise by $20
Poppy Lipstick is a lipstick producer. A decrease in the rent paid by Poppy Lipstick
A) shifts its TFC curve downward but not its TVC curve. B) shifts both its TFC curve and its TVC curve downward. C) does not shift its TFC curve but shifts its TVC curve upward. D) does not shift its TFC curve but shifts its TVC curve downward.