The marginal rate of substitution measures the:
A. magnitude of the substitution effect.
B. total utility received by a consumer when equilibrium is achieved.
C. extra utility that a consumer derives from successive units of a product.
D. consumer's willingness to substitute one product for another so that total utility will remain
constant.
Answer: D
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A) an increase in the demand for good Y. B) a decrease in the demand for good Y. C) an increase in the supply of good Y. D) a decrease in supply of good Y.
To free up factory space to increase production of its basic? product, Parris Metals that used to package its products internally decides to use the services of an outside packer. Parris Metals has? ___________ packaging.
Fill in the blank(s) with the appropriate word(s)
Perfectly competitive markets are characterized by each of the following except
A. substantial barriers to entry and exit. B. many small potential buyers. C. many small potential sellers. D. identical products.
A minimum wage mostly creates unemployment among older workers
a. true b. false