The slope of an indifference curve at all points reflects
a. the terms by which the consumer can trade off goods in the market.
b. the relative prices of the two goods.
c. the willingness of the consumer to trade one good for another.
d. consumer income relative to the price of a good.
e. the relative price ratio of the two goods.
c
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If the United States imposes a tariff on a good, then
A) domestic consumption of the good decreases. B) foreign production of the good increases. C) the government makes less revenue than it would have gained if it imposed a quota. D) foreign consumption of the good decreases. E) domestic production of the good decreases.
The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 200 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 10¢ per kilowatt. C) 20¢ per kilowatt. D) 15¢ per kilowatt. E) 5¢ per kilowatt.
After his father lost his job, Jack was forced to drop out of school. In this scenario unemployment resulted in _____
a. a loss of lifetime earnings b. a loss of human capital c. deterioration of health d. a loss of social cohesion
“Households are the principal source of savings. But businesses are the main economic investors.” Briefly explain
What will be an ideal response?