The marginal rate of substitution is
a. the slope of a budget constraint.
b. always constant.
c. the slope of an indifference curve.
d. the point at which the budget constraint and the indifference curve are tangent.
c
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Which one of the following is a characteristic of capitalism but not of communism?
a. private property. b. wage payments. c. technological development. d. use of capital equipment.
Increases in the marginal propensity to consume (MPC), other things constant, _____
a. increase the value of the multiplier b. decrease the value of the multiplier c. increase the marginal propensity to save d. shift the aggregate expenditure curve downward e. cause a downward movement along the aggregate expenditure curve
Approximately two decades after a "baby boom," one could expect: a. production to change from an interior point to a point along the production possibilities curve. b. a movement along the production possibilities curve from one point to another
c. an outward shift of the production possibilities curve along both axes. d. an inward shift of the production possibilities curve.
If the marginal utilities of the first 4 candy bars consumed are 10, 12, 9, and 7, respectively, the total utility derived from consuming 3 candy bars is
a. 3 b. 9 c. 25 d. 31 e. Total utility cannot be derived from marginal utility. On the other hand, marginal utility can be derived from total utility.