The marginal rate of substitution
A) is minus the slope of the indifference curve.
B) can be computed by measuring the curvature of the indifference curve.
C) cannot be deduced from the properties of the indifference curve.
D) can only be computed if we know the prices of all goods.
A
You might also like to view...
Explain how free international trade tends to lead to factor price equalization under the assumptions of the HO model. What does this process predict about which groups should be in favor of or opposed to free international trade?
What will be an ideal response?
As the quantity produced of a good increases, the social welfare generated by that good increases
Indicate whether the statement is true or false
If all countries produce the goods for which they have comparative advantages, all countries benefit with the increased production of goods with no additional resources being used
a. True b. False Indicate whether the statement is true or false
Reserve requirements are changed infrequently because
A. Banks can determine the amount of reserves they wish to hold regardless of the reserve requirement B. Banks cannot usually meet their reserve requirements so the Fed does not monitor it C. Banks set long-term policy decisions, loan decisions, and deposit decisions based on the reserve requirement