If Rachel is at her best affordable point, then ________
A) her marginal rate of substitution equals 1
B) her marginal rate of substitution is maximized
C) the relative price of the goods she buys equals the marginal rate of substitution
D) she is indifferent among other points on her budget line
C
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Monopolistic competition means
A) monopolies from several countries compete in the global market. B) a large number of firms producing homogeneous products. C) a large number of firms producing differentiated products. D) few firms producing differentiated products.
When a firm earns economic profit
A) accounting profits are zero. B) market share has be capitalized. C) other firms enter the market. D) total revenue has been maximized.
To boost economic growth the government is most likely to:
A. increase interest rate B. increase taxation rate C. provide incentives to invest D. provide incentives to save
Places where foreign currencies are bought and sold are
A. Foreign exchange reserves. B. Currency appreciation markets. C. Foreign exchange markets. D. Capital account markets.