Keith is indifferent between canned soup and fresh soup. In the figure above, Keith's indifference curves are represented by I1, I2, I3, and I4 curves. What is the marginal rate of transformation (MRT) of Keith's budget constraint?
A) MRT = -2
B) MRT = -1
C) MRT = -4
D) MRT = -0.5
A
You might also like to view...
One advantage to using gold as the basis for a currency is that
A) the supply of gold is rather constant over time. B) gold is considered valuable by everyone. C) gold is an important raw material for production. D) gold is easily minted into coins.
Which of the following does not serve on the Governing Council of the European Central Bank?
A) governors of the national central banks B) members of the executive board C) finance ministers of each country D) chair of the executive board
We typically think of labor as a variable cost, even in the very short run. However, some labor costs may be fixed. Which of the following items represents an example of a fixed labor cost?
A) An hourly employee B) A temporary worker who is paid by the hour C) A salaried manager who has a three-year employment contract D) none of the above
Which of the following would increase the supply of physicians?
a. Increasing the cost of attending medical school. b. More scholarships and grants to cover medical school tuition. c. Increasing the medical school entrance requirements to include 15 hours of economics. d. Making it easier for plaintiffs to prove medical malpractice claims. e. Paying medical schools to eliminate residency opportunities in some specialties.