The slope of an indifference curve defined over current and future consumption
a) is constant
b) is equal to the rate of interest
c) indicates the consumer’s rate of time preference, or impatience
d) is flatter when the curve is farther away from the origin than when it is near the origin
e) is undefined
c) indicates the consumer’s rate of time preference, or impatience
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Jose and Julia were discussing the necessary components to achieve economic growth. Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system. Julia reminded Jose that another key component is
A) property rights. B) freedom of speech. C) a guaranteed high rate of return on savings. D) freedom of religion. E) democracy.
The unemployment rate is calculated as follows:
A) labor force/number of unemployed. B) labor force participation rate/number of unemployed. C) number of unemployed/labor force. D) number of employed/labor force.
The decrease in the value of the dollar relative to the Mexican peso
A. increased the dollar price paid and decreased the peso price received for Mexican goods imported into the U.S. B. decreased both the dollar price paid and the peso price received for Mexican goods imported into the U.S. C. increased both the dollar price paid and the peso price received for Mexican goods imported into the U.S. D. decreased the dollar price paid and increased the peso price received for Mexican goods imported into the U.S.
If the supply of another input used decreases, the marginal product of labor can:
A. increase, decreasing the demand for labor. B. increase, increasing the demand for labor. C. decrease, increasing the demand for labor. D. increase, increasing the supply of labor.