Mathematically the marginal rate of substitution is
A. sometimes a positive and sometimes a negative number.
B. is equal to 1.
C. always a negative number.
D. always a positive number.
Answer: C
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The GDP price index: a. measures the average price of final goods and services produced in an economy
b. measures the quality of goods produced in an economy. c. is derived using the prices of only imported and exported goods and services. d. is derived using the implicit prices of goods and services produced by the government. e. measures the value of all intermediate goods and services sold in an economy.
Which of the following is not a characteristic of a public good?
a. It is scarce. b. It is not diminished in amount as additional people consume the product. c. Its benefits cannot be withheld from anyone. d. It is free. e. It yields widespread benefits.
Figure 17-12
If the country illustrated in is initially trading without restrictions at a world price of $1.00, the gain in producer surplus as a result of a tariff of $0.50 per unit is represented by area
a.
c + h
b.
h
c.
c
d.
c + g
e.
g
A tax that is placed on the quantity of the item being purchased, such as gallons of it, is called a(n)
A. Excise tax. B. Property tax. C. Income tax. D. None of the choices are correct.