Intuitively, the marginal rate of substitution for X with Y tells us:
A. how much Y a consumer needs to compensate them for a one-unit decrease in X.
B. how much X must be taken away from a consumer to compensate them for a one-unit increase in Y.
C. how much X a consumer needs to compensate them for a one-unit decrease in Y.
D. how much more Y the consumer will buy if the price of Y increases by $1.
A. how much Y a consumer needs to compensate them for a one-unit decrease in X.
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______ play a fundamental role in forming children's values
a. Societies b. Families, especially parents c. Schools d. Communities
The demand for labor of a perfectly competitive producer: a. is perfectly elastic at the going wage rate
b. is downward sloping because prices fall when the producer increases output. c. is downward sloping because of diminishing marginal productivity. d. is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity.
If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then:
A. the selling price for this firm is above the market equilibrium price. B. new firms will enter this market. C. some existing firms in this market will leave. D. there must be price fixing by the industry's firms.
The insurance industry is susceptible to adverse selection problems, but not problems of moral hazard.
Answer the following statement true (T) or false (F)