Along an indifference curve, as the consumer reduces the quantity of Good A in favor of more Good B the marginal rate of substitution of Good A for Good B will
A. rise.
B. stay the same.
C. fall.
D. fall and eventually turn negative.
Answer: C
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Doctors and lawyers in every state need a license to practice. This is an example of
A) ownership of a key input. B) consumer protection laws. C) consumer advocacy. D) occupational licensing.
Cartels frequently break down in the long run because
a. they are illegal b. tacit collusion is illegal c. contracts and agreements are legally binding d. cooperative behavior usually lowers profits for the entire industry e. members have an incentive to increase output
In 2017, the poverty line for a family of four was approximately
A. $15,000 B. $25,000. C. $35,000. D. $35,000.
Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are
A. Unrelated in the sawmill operator's decision. B. Substitutes in production. C. Complements in production; by-products. D. None of the choices are correct.