Two products are perfect substitutes if:
A. a consumer is willing to swap one for another at a fixed rate.
B. they are valuable only when used together in fixed proportions.
C. their indifference curves are L-shaped.
D. an increase in the price of one good causes a decrease in the demand for the other good.
A. a consumer is willing to swap one for another at a fixed rate.
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When economists use the term "big tradeoff" when discussing efficiency they are referring to the tradeoff between
A) external costs and external benefits. B) marginal cost and marginal benefits. C) producer surplus and consumer surplus. D) efficiency and fairness. E) deadweight loss and producer/consumer surplus.
How did the Mexican debt crisis of the early 1980s come about? How has the Mexican economy coped during the past 20 years, in the aftermath of the debt crisis? What has been the legacy of the debt crisis for the Mexican economy?
What will be an ideal response?
What is a barter system? What are the drawbacks of this system?
A barter economy is one in which
a. money serves as a medium of exchange. b. only precious metals are accepted as money. c. goods are traded directly for other goods. d. paper money is backed by gold.